Which Statement Is Correct

question 58

Multiple Choice

Which statement is correct?

• A)Diluted EPS will always be less than basic EPS.
• B)Diluted EPS will always be greater than basic EPS.
• C)Diluted EPS will always be equal to EPS.
• D)Diluted EPS will be less than or equal to basic EPS.

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, expressed as a percentage.

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit but before income taxes and interest expenses are deducted.

Average Operating Assets

The average value of assets used in the production or operation of a company over a specific period.

Sales

The total amount of revenue generated by the sale of goods or services.