Accountants and Financial Analysts Criticize Earnings Per Share as a Measure

question 6

Multiple Choice

Accountants and financial analysts criticize earnings per share as a measure of profitability because it does

• A)not consider the amount of shareholders' equity required to generate that level of earnings.
• B)not consider the amount of liabilities required to generate that level of earnings.
• C)consider the amount of assets required to generate that level of earnings.
• D)not consider the amount of assets required to generate that level of earnings.
• E)consider the amount of liabilities required to generate that level of earnings.

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