Of the Following,select the Incorrect Statement Concerning Earnings Per Share

question 39

Multiple Choice

Of the following,select the incorrect statement concerning earnings per share.

• A) During periods when all income is paid out as dividends,earnings per share and dividends per share under a simple capital structure would be identical.
• B) Under a simple capital structure,no adjustment to shares outstanding is necessary for a stock split on the last day of the fiscal period.
• C) During a period,changes in stock issued or reacquired by a company may affect earnings per share.
• D) During a loss period,the amount of loss attributed to each share of common stock should be computed.

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Definitions:

Justifiably Withheld

Pertains to information or documents that may legally be kept confidential or not disclosed due to valid exemptions under applicable laws or regulations.

Liquidated Damages

Pre-determined damages agreed upon by the parties in a contract to be paid in the event of a breach.

Reasonable Expenses

Costs incurred that are considered fair, appropriate, and necessary for the circumstances.

Substitute Widgets

Hypothetical or actual replacement products that serve the same function or purpose as another product in a market context.