The Following Information Was Taken from the Records of Elton

question 20

Multiple Choice

The following information was taken from the records of Elton Corporation for the period ending December 31, 2012: Assuming that 6,000 shares of stock are outstanding, earnings per share is approximately

• A) $1.40
• B) $0.40
• C) $0.27
• D) $0.23

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Definitions:

Negligent Misstatement

Providing false information carelessly or without reasonable grounds, causing someone else to suffer damage or loss.

Legal Liability

The legal responsibility to compensate for harm caused to another person or property, arising out of one's actions or failures to act.

Negligent Conduct

Behavior that falls below the standard of care expected to protect others from unreasonable risk of harm.

Illegal Contract

A contract that is not enforceable because it involves activities that are against the law.