Which of the following is a correct statement concerning earnings per share?
A) Earnings per share can never be a negative number.
B) Earnings per share must be reported for all corporations.
C) If a company has discontinued operations, at least two EPS amounts must be reported.
D) Reported earnings per share is the result of dividing weighted-average shares by net income.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) must reflect both continuing operations and discontinued operations separately, hence if a company has discontinued operations, it must report at least two EPS amounts: one for continuing operations and one for discontinued operations. This provides a clearer picture of ongoing profitability.

Which of the Following Is a Correct Statement Concerning Earnings