If a stock split occurred, when calculating the current year's EPS, the shares are treated as issued:
A) At the end of the year.
B) On the first day of the next fiscal year.
C) At the beginning of the year.
D) On the date of distribution.

Question

Quizplus · Accepted Answer

When a stock split occurs, the shares are treated as issued at the beginning of the year. This means that the number of outstanding shares is adjusted at the beginning of the year for the stock split, and this new share count is used to calculate the current year's EPS.

If a Stock Split Occurred, When Calculating the Current Year's