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Which of the Following Statements Is True

Question 96

Multiple Choice

Which of the following statements is true?


A) Earnings per share is an internal measure and is not used by stockholders.
B) The denominator used in computing earnings per share represents the shares of common stock outstanding on the last day of the accounting period.
C) Net income is not adjusted when computing earnings per share.
D) By comparing earnings per share of a single corporation over time, a stockholder can evaluate the corporation's relative earnings performance.

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