Earnings Per Share Is a Ratio That Describes the Amount

question 113

True/False

Earnings per share is a ratio that describes the amount of net income less preferred stock dividends available to the common shareholders.

Distinguish between general and administrative expenses and other expense categories.

Understand the concepts of inventory shrinkage, its causes, and the recording process.

Differentiate between perpetual and periodic inventory systems, and their implications on financial reporting.

Understand the gross method of accounting for purchases and sales.

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Definitions:

Net Income

The company's earnings following the deduction of all costs, taxes, and expenses from the overall income.

FVTOCI Investments

Financial assets classified as fair value through other comprehensive income; adjustments to their fair value don't affect profit or loss but other comprehensive income.

IFRS 9

An International Financial Reporting Standard that deals with the accounting for financial instruments, covering the classification, measurement, and recognition of financial assets and liabilities.

Accumulated Other Comprehensive Income

Represents the total of all unrealized gains and losses that are not included in net income but affect shareholders' equity.