Basic Earnings Per Share

question 15

Multiple Choice

Basic earnings per share

• A)is calculated by dividing income available to common shareholders for the period by the dollar value in the common shares account.
• B)is the only ratio that must be presented in the financial statements for publicly traded companies.
• C)is frequently compared across companies in the same industry.
• D)is the only ratio that must be presented in the financial statements for both publicly traded companies and privately held companies.

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Definitions:

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