For Which One of the Following Components Is Earnings Per

question 27

Multiple Choice

For which one of the following components is earnings per share information required to be presented on the income statement?

• A)discontinued operations
• B)extraordinary items
• C)income from continuing operations
• D)cumulative effect of a change in accounting principle

---

Definitions:

Account Payable

Obligations or debts a company owes to suppliers or creditors for goods or services received that have not yet been paid for.

Increases Liabilities

Situations or transactions that result in a rise in the claims against a company’s assets.

Decreases Assets

Refers to any operation or transaction that results in a reduction of the value of assets owned by a business.

Account Receivable

Money owed to a company by customers who have purchased goods or services on credit.