Earnings Per Share Is Calculated

question 152

Multiple Choice

Earnings per share is calculated

• A) only for ordinary shares.
• B) only for preference shares.
• C) for ordinary and preference shares.
• D) only for treasury shares.

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Definitions:

Capital Lease

A lease agreement that has the characteristics of a purchase agreement, where the lessee assumes most of the risks and rewards of ownership.

Executory Costs

Refers to the expenses incurred in executing a contract, often related to leasing agreements, such as insurance, maintenance, and property taxes.

Operating Expenses

Costs associated with the day-to-day functions of a business, not including the cost of goods sold but typically covering administrative, sales, and general expenses.

GAAP

Generally Accepted Accounting Principles; a framework of accounting standards, rules, and procedures defined by the professional accounting industry in a specific country.