Which Statement Below Is True Regarding EPS and a Company's

question 78

Multiple Choice

Which statement below is true regarding EPS and a company's financial statements?

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

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Definitions:

IT Applications

Software applications that are designed to help individuals or businesses execute specific tasks or functions using information technology.

IT Investment

Financial resources allocated towards the acquisition, upgrade, and maintenance of information technology infrastructure and software.

Entrepreneur

An individual who creates, organizes, and operates a business venture, taking on greater than normal financial risks in order to do so.

CEO

The Chief Executive Officer, the highest-ranking executive in a company, responsible for making major corporate decisions.