Which of the Following Is Correct About the Difference Between

question 89

Multiple Choice

Which of the following is correct about the difference between basic earnings per share (EPS) and diluted earnings per share?

• A)Basic EPS uses total common shares outstanding,whereas diluted EPS uses the weighted-average number of common shares.
• B)Basic EPS is not a required disclosure,whereas diluted EPS is required disclosure.
• C)Basic EPS is not adjusted for the potential dilutive effects of complex financial structures,whereas diluted EPS is adjusted.
• D)Basic EPS uses comprehensive income in its calculation,whereas diluted EPS does not.

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Definitions:

Resonance Structures

Different ways of drawing the same molecule that depict the possible locations of pi electrons or nonbonded electrons within the molecule.

Regiochemistry

This term relates to the orientation of the addition or substitution of a chemical bond in a molecule, determining the structure of the resulting product.

Cycloaddition

A chemical reaction in which two or more unsaturated molecules (or parts of the same molecule) combine to form a cyclic compound.

Sigmatropic Rearrangement

A type of pericyclic reaction in which a σ-bond (sigma bond) changes position relative to a π system (pi system) within a molecule, following specific suprafacial or antarafacial pathways.