The Basic Earnings Per Share Ratio Does Not Take What

question 200

Multiple Choice

The basic earnings per share ratio does not take what into account?

• A)stock options
• B)net income
• C)taxes
• D)number of shares outstanding

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, ultimately resetting the temporary accounts for the new fiscal period.

Post-closing Trial Balance

A statement created after closing entries are made, listing all active accounts and their balances to ensure debits equal credits.

Asset Accounts

Accounts that represent tangible and intangible items of value owned by a business, which can include cash, receivables, inventory, equipment, and intellectual property.

Liability Accounts

Accounts on a balance sheet that represent obligations or debts of a company that are expected to be paid in the future.