Which of the Following Is a Correct Statement Concerning Earnings

question 75

Multiple Choice

Which of the following is a correct statement concerning earnings per share?

• A) Earnings per share can never be a negative number.
• B) Earnings per share must be reported for all corporations.
• C) If a company has discontinued operations, at least two EPS amounts must be reported.
• D) Reported earnings per share is the result of dividing weighted-average shares by net income.

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Definitions:

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business is not making a profit.

Materials Cost

The expense associated with the raw materials and supplies used in the production of goods or services.

Labor

The work performed by individuals that contributes to the production of goods or services in an economy, often categorized as manual or skilled tasks.