Earnings Per Share (EPS)is Calculated As

question 85

Multiple Choice

Earnings per share (EPS) is calculated as:

• A)net income divided by the number of shares of common stock issued at the end of the year.
• B)net income divided by the number of shares of common stock outstanding at the end of the year.
• C)net income divided by the average number of shares of common stock outstanding throughout the year.
• D)net income divided by the average number of shares of common stock issued throughout the year.

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Definitions:

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Sole Proprietorship

A sole proprietorship is a type of business structure where one individual owns and operates the business, bearing sole responsibility for its assets and liabilities.

Single Individual

Refers to one person, often in contexts emphasizing the role or impact of just one member within a larger group or system.

Closed Receivership

A legal process where a court appoints a receiver to manage the affairs of a financially troubled company, with the aim of paying off its debts.