Which statement is correct about basic EPS?
A)It is calculated on the shares outstanding at the beginning of the year.
B)It is calculated on the shares outstanding at the end of the year.
C)It is calculated on the shares issued during the year.
D)It is calculated on the shares outstanding during the year.

Question

Quizplus · Accepted Answer

Basic EPS is calculated on the shares outstanding during the year, meaning the weighted average number of shares outstanding throughout the year. This takes into account any new shares issued or shares bought back during the year, as well as any shares outstanding at the beginning of the year.

Which Statement Is Correct About Basic EPS