Earnings Per Share Must Be Reported on the Face of Every

question 146

Multiple Choice

Earnings per share must be reported on the face of every income statement that is

• A)Prepared in accordance with generally accepted accounting principles.
• B)Prepared in accordance with the National Association of State Boards of Accountancy standards.
• C)Prepared in accordance with ethical standards set by the American Institute of Certified Public Accountants.
• D)Prepared in accordance of the federal government.

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Definitions:

Pork Bellies

Futures contracts traded on the commodity markets, representing 40,000 lbs of frozen, trimmed bellies from hogs, which are used to make bacon.

Cash Delivery

The process of settling a futures or options contract by exchanging the cash equivalent of the asset rather than the physical asset itself.

Futures Contracts

Futures contracts are standardized legal agreements to buy or sell something at a predetermined price at a specified time in the future, between parties not known to each other.

Forward Contracts

Agreements to buy or sell an asset at a future date for a price specified today, not traded on an exchange.