Regarding Earnings Per Share (EPS) Data

question 100

Multiple Choice

Regarding earnings per share (EPS) data

• A) both public and private corporations are required to report EPS on the face of the income statement.
• B) although public corporations are required to report EPS, private corporations are not.
• C) EPS related to comprehensive income is required.
• D) financial analysts do not attach much importance to EPS data.

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Definitions:

Regulation D

A set of SEC regulations offering exemptions from the registration requirements for certain private placements of securities.

Securities Act of 1933

A U.S. law enacted to regulate the offer and sale of securities, primarily aimed at preventing deceit, misrepresentations, and other fraud in the securities industry.

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, often with dividends that are paid out before those of common shares.

Securities Act

U.S. legislation enacted in 1933 to regulate the sale of securities, primarily aimed at preventing fraud in the securities market.