Which of the following statements relating to earnings per share is not true?
A)It is an often-reported measure of the potential return to stockholders.
B)It is a financial measure.
C)It is a cash measure.
D)It is based on the accrual basis of accounting.

Question

Quizplus · Accepted Answer

Earnings per share is not a cash measure, as it is based on net income (which includes non-cash items such as depreciation) and the number of outstanding shares, rather than actual cash flows.

Which of the Following Statements Relating to Earnings Per Share