Which of the Following Is Not True About Earnings Per

question 5

Multiple Choice

Which of the following is not true about earnings per share?

• A)Companies with discontinued items must only report EPS on income before such items.
• B)Must be reported on the income statement or in the notes accompanying the financial statements.
• C)Are calculated using a weighted average of the outstanding shares.
• D)In complex situations, financial statements might include up to six EPS calculations.

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Definitions:

Operating Contribution

The portion of revenue that remains after variable expenses are subtracted, indicating how much contributes to covering fixed costs and generating profit.

Restricted Contribution

Funds given to an organization with specific conditions attached regarding their use.

Donation Revenue

Income received from giving without the expectation of receiving something in return, typically for non-profit organizations.

Restricted Fund Method

An accounting strategy used for tracking and reporting separately on resources that are restricted by donors for specific purposes.