Which One of the Following Is True About Earnings Per

question 30

Multiple Choice

Which one of the following is true about earnings per share?

• A)Must be calculated as earnings per 'preferred' share
• B)Must be calculated as earnings per 'common' share
• C)May be increased or decreased because of outstanding stock options or convertible debt
• D)Appears with the gross profit percentage on the income statement

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Definitions:

Well-Being

A state of health, happiness, and prosperity, reflecting physical, emotional, and psychological welfare.

Developmental Process

The sequence of growth or evolution of a living organism or a part of an organizational or conceptual entity.

Self-Organization

The process by which internal regulation or order emerges within a system or organism without being directed by an external control.

Reed

A type of tall, slender-leaved plant of the grass family, often found in wetlands or water, or a flexible woody stem used in making musical instruments.