Choose the Correct Statement Concerning EPS

question 99

Multiple Choice

Choose the correct statement concerning EPS.

• A) Usually, reported EPS is the actual historical income per weighted average share outstanding during the period.
• B) EPS can never be negative.
• C) If net income is less than zero, all potentially dilutive securities are anti-dilutive.
• D) All convertible securities must be incorporated into diluted EPS.

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Definitions:

Abiding by Rules

The act of following established guidelines, regulations, or laws within a given context or environment.

Divergent Thinking

A cognitive approach or technique designed to produce inventive concepts through the examination of numerous potential answers.

Programmed Decision

involves using established procedures or rules to address recurring problems or situations, facilitating consistency and efficiency in decision-making.

Escalation of Commitment

The phenomenon where people continue to invest in a decision or project despite evidence of its failure, often due to pride or fear of loss.