Which of the Following Statements Is True

question 26

Multiple Choice

Which of the following statements is true?

• A)Earnings per share is an internal measure and is not used by stockholders.
• B)The denominator used in computing earnings per share represents the shares of common stock outstanding on the last day of the accounting period.
• C)Net income is not adjusted when computing earnings per share.
• D)By comparing earnings per share of a single corporation over time, a stockholder can evaluate the corporation's relative earnings performance.

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Definitions:

Excise Tax

A tax charged on specific goods and services, such as tobacco and alcohol, often imposed to discourage their use or to generate revenue.

Sales

The exchange of a commodity for money; the action of selling something.

Quota

A limit placed on the quantity of a specific good that can be imported or exported during a given timeframe, usually to protect domestic industries.

Excise Tax

A type of tax charged on specific goods, services, and activities, often with the intention of reducing their consumption or generating revenue.