For a Company That Has Only Common Shares Outstanding,dividing Total

question 98

Multiple Choice

For a company that has only common shares outstanding,dividing total shareholders' equity by the number of shares outstanding determines the:

• A) liquidation value per share
• B) earnings per share
• C) market value per share
• D) book value per share

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Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Depreciation Expense

The portion of the cost of a fixed asset that is considered consumed in each period of the asset's useful life.

Retrospective Adjustments

Adjustments made to the financial statements of prior periods when adopting a new accounting principle, as if that principle had always been applied.

Salvage Value

The estimated residual value of an asset after its useful life is over.