Which of the Following Statements Regarding Earnings Per Share Is

question 10

Multiple Choice

Which of the following statements regarding earnings per share is not correct?

• A)It can be reported on the income statement.
• B)The numerator is net income.
• C)The denominator is the average number of shares of common stock outstanding.
• D)It doesn't have to be disclosed on the income statement or the notes to the financial statements.

---

Definitions:

Protected Individuals

Persons who are afforded special protections under the law, often due to their status, such as minors, disabled persons, or protected witnesses.

Restatement View

A perspective or doctrine derived from the Restatements of the Law, legal publications that seek to distill the common law into a series of principles or rules.

Tort Liability

Legal responsibility for damages caused by a wrongful act or omission other than breach of contract.

Accountant

A professional who performs financial functions related to the collection, accuracy, recording, analysis, and presentation of a business, organization, or individual's financial operations.