Which of the Following Is Correct About the Difference Between

question 89

Multiple Choice

Which of the following is correct about the difference between basic earnings per share (EPS) and diluted earnings per share?

• A)Basic EPS uses total common shares outstanding,whereas diluted EPS uses the weighted-average number of common shares.
• B)Basic EPS is not a required disclosure,whereas diluted EPS is required disclosure.
• C)Basic EPS is not adjusted for the potential dilutive effects of complex financial structures,whereas diluted EPS is adjusted.
• D)Basic EPS uses comprehensive income in its calculation,whereas diluted EPS does not.

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