Which of the Following Statements Is Not True Regarding Earnings

question 116

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.

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Definitions:

Equity Of Redemption

The equitable right of a mortgagor to acquire the title to the mortgaged property by payment of the debt secured by the mortgage.

Arrears

A state of being behind in fulfilling obligations, such as payments on a loan, rent, or utilities.

Purchaser

An individual or entity that buys goods or services from a seller.

Payments

The act of giving money in exchange for goods, services, or to fulfil a legal obligation.