Gear Corporation Had the Following Common Stock Record During the Current

question 120

Multiple Choice

Gear Corporation had the following common stock record during the current calendar year: What is the number of shares to be used in computing basic EPS?

• A)5,500,000.
• B)5,557,500.
• C)5,555,000.
• D)5,050,000.

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Definitions:

Favorable Variance

A financial term indicating that actual costs were lower than the planned or standard costs in a budget.

Budgeted Amount

The total amount of money that has been allocated for a specific purpose or period of time.

Return on Assets

A financial ratio that measures the profitability of a company in relation to its total assets.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.