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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