In Computing Earnings Per Share,the Number of Shares Used Is

question 47

Multiple Choice

In computing earnings per share,the number of shares used is:

• A)The year-end number of shares outstanding.
• B)The beginning of the year number of shares outstanding.
• C)The average of the beginning and the year-end number of shares outstanding.
• D)The weighted average of shares outstanding for the year.

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Definitions:

Cost of Goods Sold

The immediate expenses linked to the creation of products sold by a firm, encompassing materials, workforce, and indirect costs.

Periodic Inventory System

A method of inventory valuation for financial reporting purposes where a physical count of the inventory is taken at specified intervals.

Purchase Account

An account used in accounting to record the total purchases of goods and services by a company.

Inventory Account

An account used to record the value of inventory held by a company, including raw materials, work-in-progress, and finished goods.