If Net Income Rises, but the Number of Shares Outstanding

question 19

True/False

If net income rises, but the number of shares outstanding remains the same, EPS will rise.

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Definitions:

Prohibited

Refers to actions or activities that are forbidden by law, regulation, or policy.

LIFO

"Last In, First Out," an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating how efficiently a company produces or buys its products.

Ending Inventory

The quantity and monetary value of unsold goods that a company has at the end of an accounting period, to be carried over as the beginning inventory of the next period.