Which statement is correct about basic EPS?
A)It is an indicator of profitability that communicates ownership of earnings attributable to a company's dilutive shares.
B)It is an indicator of profitability that communicates ownership of earnings attributable to a company's ordinary shares.
C)It indicates the market price attributable to a company's ordinary shares.
D)It indicates the market price attributable to a company's dilutive shares.

Question

Quizplus · Accepted Answer

Basic Earnings Per Share (EPS) is a measure of the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability on a per-share basis. It specifically relates to ordinary shares, not taking into account the potential effects of dilutive securities.

Which Statement Is Correct About Basic EPS