Basic Earnings Per Share Is Calculated by Dividing

question 16

Multiple Choice

Basic earnings per share is calculated by dividing

• A) revenue by weighted average shareholders' equity.
• B) revenue by the weighted average number of common shares.
• C) income available to common shareholders by weighted average shareholders' equity.
• D) income available to common shareholders by the weighted average number of common shares.

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Definitions:

Deficit

An economic condition where expenditures exceed revenue.

Balance of Trade

The difference between a country's exports and imports of goods.

Imports

Goods or services brought into one country from another for sale or use.