Which of the Following Statements Is Not True Regarding Earnings

question 90

Multiple Choice

Which of the following statements is not true regarding earnings per share?

• A)Earnings per share is useful in comparing earnings performance across companies at the same point in time.
• B)Earnings per share is useful in comparing earnings performance for the same company over time.
• C)Earnings per share is calculated as net income minus dividends on preferred stock all divided by the average number of common shares outstanding.
• D)Earnings per share is forecasted by financial analysts.

Identify and describe the concepts of accumulated depreciation and contra asset accounts.

Calculate depreciation expenses using units-of-production and other methods.

Distinguish between capital and revenue expenditures.

Understand the accounting treatments for capital expenditures including equipment and furniture.

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Definitions:

Explicit Premise

An explicit premise is a statement in an argument that is clearly and directly expressed, providing a basis for a conclusion.

Claim

An assertion, usually unsupported, about something believed to be true by the claimant.

Guidance

Advice or information aimed at resolving a problem or reaching a decision.

Claim

A statement or assertion that something is the case, typically without providing evidence or proof.