EPS (Earnings Per Share) Is a Key Measure of a Business's

question 42

Multiple Choice

EPS (Earnings Per Share) is a key measure of a business's success. Which statement below is true regarding EPS and a company's financial statements?

• A) The EPS calculation never takes into consideration preferred shares or preferred shares dividends.
• B) EPS is based on the number of common shares outstanding at the end of an accounting period.
• C) An EPS figure should be calculated and presented for each significant element of net income on the income statement.
• D) EPS based on the actual outstanding number of common shares of stock is called diluted EPS.

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