When a Company Reports Both Diluted Earnings Per Share and Basic

question 19

Multiple Choice

When a company reports both diluted earnings per share and basic earnings per share:

• A)Basic EPS would be greater than fully diluted EPS.
• B)Basic EPS would be less than fully diluted EPS.
• C)Basic EPS may be either greater or less than fully diluted EPS.
• D)Both should never be shown;only one or the other would be reported.

---

Definitions:

Classic Buick

Refers to a vintage or highly valued model of Buick, a prominent automobile brand known for its luxury vehicles.

Specified Amount

An exact or particular sum of money designated in a contract or agreement that is agreed upon by all parties involved.

Status Indians

Individuals recognized by the Canadian government as being registered under the Indian Act, granting them certain rights and benefits.

Contractual Obligations

Duties that one or more parties are legally bound to perform under the terms of a contract.