Regarding Earnings Per Share (EPS)data

question 398

Multiple Choice

Regarding earnings per share (EPS) data

• A)both public and private corporations are required to report EPS on the face of the income
• Statement.
• B)although public corporations are required to report EPS, private corporations are not.
• C)EPS related to comprehensive income is required.
• D)financial analysts do not attach much importance to EPS data.

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Definitions:

Periodic Inventory System

An inventory valuation method where updates to inventory levels are made periodically, typically at the end of an accounting period, rather than after each sale or purchase.

Purchases Discounts

Reductions in price given by suppliers for early payment of invoices.

Freight In

The cost associated with transporting goods into a warehouse, typically considered a part of the inventory cost.

Multiple-Step Income Statement

An income statement that breaks down revenues and expenses into separate categories, such as operating and non-operating, to highlight different aspects of business performance.