Which of the Following Statements Relating to Earnings Per Share

question 90

Multiple Choice

Which of the following statements relating to earnings per share is not true?

• A)It is an often-reported measure of the potential return to stockholders.
• B)It is a financial measure.
• C)It is a cash measure.
• D)It is based on the accrual basis of accounting.

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Definitions:

New Product

An item recently introduced to the market that serves a particular need or niche, differing from existing products in some significant way.

Erosion

In finance, the gradual reduction of earnings or assets, often due to competition or other external factors.

Patent

A form of intellectual property right granting the patent holder the exclusive right to make, use, sell, and offer for sale the patented invention for a certain period of time.

Final Cash Flow

Final Cash Flow is the last cash inflow or outflow in a series of transactions, often associated with the termination or exit of an investment.