Of the Following,select the Incorrect Statement Concerning Earnings Per Share

question 39

Multiple Choice

Of the following,select the incorrect statement concerning earnings per share.

• A) During periods when all income is paid out as dividends,earnings per share and dividends per share under a simple capital structure would be identical.
• B) Under a simple capital structure,no adjustment to shares outstanding is necessary for a stock split on the last day of the fiscal period.
• C) During a period,changes in stock issued or reacquired by a company may affect earnings per share.
• D) During a loss period,the amount of loss attributed to each share of common stock should be computed.

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Definitions:

Factory Overhead

Costs associated with the production process that are not directly tied to specific units of product, such as maintenance, utilities, and salaries of indirect labor.