Earnings per share (EPS)can be affected by all of the following except:
A)how the company chose to finance its operations.
B)the method of depreciation.
C)the inventory costing method.
D)classification of debt as current or long-term.

Question

Quizplus · Accepted Answer

EPS = (Net income − Preferred dividends)÷ Average number of common shares outstanding
Since debt includes interest expense,the extent to which a company uses debt or equity financing,as well as its depreciation and inventory costing methods,affect net income and,as a result,earnings per share.The classification of debt as current or long-term does not affect EPS.

Earnings Per Share (EPS)can Be Affected by All of the Following