Which statement is correct about the "weighted average number of ordinary shares outstanding" (WASO)?
A)It is used only in the numerator of the EPS calculation.
B)The weighted average is the number of shares outstanding at the beginning of the year.
C)The weighted average accounts for changes in shares issued or cancelled during the year.
D)It is used only in the denominator of the diluted EPS calculation.

Question

Quizplus · Accepted Answer

The weighted average number of ordinary shares outstanding takes into account all changes in the number of shares outstanding during a given period of time. It is used in both the numerator and denominator of the EPS calculation to ensure accuracy in reporting earnings per share. Therefore, option A and D are incorrect. Option B is also incorrect as the weighted average is calculated based on the number of shares outstanding throughout the entire year, not just at the beginning.

Which Statement Is Correct About the "Weighted Average Number of Ordinary