Which of the Following Statements Is Not True Regarding Earnings

question 91

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.

---

Definitions:

Causal Inferences

The process of determining the cause-and-effect relationships between variables.

Sociological

Pertaining to sociology, the study of the development, structure, and functioning of human society.

Surveys

A method of gathering information from a sample of individuals through their responses to questions, used in research to collect data on attitudes, opinions, and behaviors.

Group Processes

The interactions and dynamics within a group that influence its functioning and outcomes.