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:

Federal Court

A court system at the national level that has jurisdiction over legal disputes that involve federal laws, the constitution, or disputes between states or between the U.S. government and foreign governments.

Balance of Probabilities

A standard of proof in civil trials requiring that a case is more likely to be true than not, essentially over 50% likelihood.

Criminal Matter

A legal issue or case involving violations of public law and the commission of acts that are prohibited and punishable by the state.

Jury

A group of citizens selected according to law, who are sworn to inquire into matters of fact and deliver a verdict based on the evidence presented in a court trial.