Which of the Following Earnings Per Share Figures Must Be

question 16

Multiple Choice

Which of the following earnings per share figures must be disclosed on the face of the income statement?

• A) EPS for income before taxes.
• B) The effect on EPS from unusual items.
• C) EPS for gross profit.
• D) EPS for income from continuing operations.

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Definitions:

Effective Annual Rate

The genuine rate of interest that an investment, savings account, or loan delivers, factoring in the effects of compounding.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage rate.

Effective Annual Rate

A measure of interest that accounts for compounding over a year, giving a true reflection of the financial cost or return.

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, accounting for all costs.