Which Statement Is Correct

question 28

Multiple Choice

Which statement is correct?

• A)Basic EPS is based on the dilutive shares outstanding at the end of the year.
• B)Basic EPS is based on the dilutive shares outstanding during the year.
• C)Basic EPS is based on the ordinary shares outstanding at during the year.
• D)Basic EPS is based on the ordinary shares outstanding at the end of the year.

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Definitions:

Liquidation

The process of closing down a business by selling its assets to pay off its debts, with any leftovers being distributed to shareholders.

Reorganization

The act of restructuring a company's business or legal structure, often for reasons related to improving the company's operations, efficiency, or to adjust to financial instability.

Statement of Financial Affairs

A detailed report showing a company's assets, liabilities, and net worth, often used in bankruptcy proceedings.

Categories of Assets

A classification system for assets, typically grouping them into categories such as current assets, long-term investments, property, plant and equipment, and intangible assets.