Basic Earnings Per Share (EPS)is Always Computed by Dividing Net

question 136

True/False

Basic earnings per share (EPS)is always computed by dividing net income by the weighted average number of common shares of stock outstanding.

---

Definitions:

Deflation

A decrease in the general price level of goods and services in an economy over a period.

CPI

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Base Year

A specific year against which economic growth, prices, or other economic indicators are measured and compared.

Unemployment Benefits

Payments made by the government or a private insurance company to individuals who are unemployed and actively looking for a job.