Which Statement Is Correct About Basic EPS

question 83

Multiple Choice

Which statement is correct about basic EPS?

• A)It is an indicator of profitability that communicates ownership of earnings attributable to a company's dilutive shares.
• B)It is an indicator of profitability that communicates ownership of earnings attributable to a company's ordinary shares.
• C)It indicates the market price attributable to a company's ordinary shares.
• D)It indicates the market price attributable to a company's dilutive shares.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating a company's fixed versus variable costs ratio.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Investment

The allocation of resources, such as capital or time, with the expectation of generating an income or profit.

Consumption Goods

Products and services that are used by individuals for personal enjoyment and satisfaction, not for further production.