Basic Earnings Per Share (EPS) Is Determined Using

question 41

Multiple Choice

Basic earnings per share (EPS) is determined using:

• A) authorized common shares.
• B) issued common shares.
• C) outstanding common shares.
• D) treasury shares.
• E) authorized preferred shares.

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Definitions:

No-Par Value Stock

Capital stock that has not been assigned a value in the corporate charter.

Legal Capital

The minimum amount of capital that a corporation is required to maintain, as mandated by corporate laws, to protect creditors.

Dividends

Shareholders' receipts of payments from a corporation, generally tied to the distribution of earnings.

Incorporated

A legal process used to form a corporate entity or company, recognized separately from its owners with its own legal rights.