Which Statement Concerning Earnings Per Share Is Incorrect

question 55

Multiple Choice

Which statement concerning earnings per share is incorrect?

• A) It represents a conversion of the absolute dollar amount of profit to a per share basis.
• B) Even if profits increase earnings per share could decrease if share capital increases at a greater rate than profits.
• C) Earnings per share is regarded as one of the least important financial ratios.
• D) In calculating earnings per ordinary share, preference dividends are deducted from profit.

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Definitions:

Submarine Canyons

Deep, steep-sided valleys cut into the seabed of the continental slope, often extending well beyond the depth of the surrounding ocean floor.

Oceanic Plateau

Elevated regions of the ocean floor, characterized by a relatively flat topography, and often formed by volcanism or large igneous provinces.

Back-Arc Spreading

The formation of new oceanic crust behind a volcanic arc, resulting from the divergent movement of plates at a convergent boundary, a reiteration emphasizing plate tectonic mechanisms.

Mesozoic Jurassic

A geologic period within the Mesozoic Era, known for the dominance of dinosaurs and the presence of significant geological and climatic changes.