Which of the Following Statements Is True? the Measure of Earnings

question 24

Multiple Choice

Which of the following statements is true? The measure of earnings used in calculating basic earnings per share:

• A)must be determined after deducting dividends paid to ordinary shareholders
• B)must exclude all extraordinary items
• C)must exclude profit allocated to non-controlling interest
• D)is always equal to period profit or loss

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Definitions:

Segment Assets

These are the specific assets that are attributed to a company's business segment, helping to analyze performance by division.

Cash Balances

The total amount of cash or cash equivalents that a company has accessible at any given time.

GAAP

Generally Accepted Accounting Principles; a framework of accounting standards, principles, and procedures used in the compilation of financial statements to ensure accuracy and fairness.

Interim Reporting

Financial statements prepared and published at intervals less than a fiscal year, typically quarterly or semi-annually, to provide updates on a company's performance.