Which of the following is not true about EPS?
A)It must be reported by all corporations whose stock is publicly traded.
B)It must be reported separately for discontinued operations.
C)It must be reported separately for extraordinary items.
D)It must be reported on operating income.

Question

Quizplus · Accepted Answer

EPS is not reported on operating income. It is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. EPS may be reported separately for discontinued operations and extraordinary items, but it is not a requirement. However, all corporations whose stock is publicly traded must report EPS in their financial statements.

Which of the Following Is Not True About EPS