Earnings Per Share Disclosed by Reporting Entities Have Limitations Because

question 6

Multiple Choice

Earnings per share disclosed by reporting entities have limitations because of the:
I. Different accounting methods that can be used in the determination of profit.
II. Different amounts of profit depending on the size of the entity.
III. Different numbers of shareholders depending on the size of the entity.
IV. Ability of an entity to change the number of shares used in the denominator.

• A) I and IV.
• B) II and III.
• C) II and IV.
• D) I and III.

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Definitions:

National Norms

Statistical standards based on the performance of a national sample that provide benchmarks for comparing individual or group scores.

Interquartile Range

The Interquartile Range is a statistical measure of variability, defined as the difference between the upper and lower quartiles, used to describe the spread of data points in a dataset.

Mean

Mean is a statistical measure representing the average value in a set of numbers, calculated by adding all the values together and dividing by the number of values.

National Mean

The average score of a given population on a particular test or assessment.