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2 years ago

All of the following statements are true regarding earnings per common share (EPS) except:

Business

1 answer:

SVEN [57.7K]2 years ago

8 0

Answer:

d) EPS cannot be calculated if a company has no preferred stock.

Explanation:

The above statement is untrue about E.P.S because the reason why 'Preferred dividend' (which is dividend on preference shares) is subtracted from Net Income, before being divided by the 'Average Number of Common Shares Outstanding' is for comparability.

Since the denominator is based on 'common shares' or 'ordinary shares', it makes sense not to include the part of income that has fallen to preferred shares.

As a matter of fact there are a lot of companies that do not have preferred stock and still report Earnings Per Share on their financial statements.

Finally, still on comparability; E.P.S helps to compare the performance of big companies that have preferred stock with small companies that do not have. Hence EPS can be calculated even when there is no preferred stock.

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For each error below, indicate:

patriot [66]

Answer:

1. Inventory account will be affected and assertions of accuracy and valuation will be violated.

2. Assets are overstated and assertion classification is violated.

3. Liability is understated and assertions of accuracy is violated.

4. No impact.

Explanation:

Assertions are certain claims of a business which a business must fulfill in order to make its financial statements reliable. A company has to record the expense when it is incurred in order to provide accuracy in valuation. In the given cases the assertions are violated which impact business accounts.

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2 years ago

The government regulates financial markets for two main reasons: A. to ensure that financial intermediaries do not earn more tha

Keith_Richards [23]

Answer:

C. to improve control of monetary policy and to increase the information available to investors.

Explanation:

The government regulates the financial markets for the investor as they ate fully informed and are free from the manipulation and thus the financial markets are made strong by the government and more stable for work.

4 0

2 years ago

logan asks his friends, family, teachers and coaches if they know anybody who can tell him more about a career in which he is in

kondor19780726 [428]

Well, it matters what career he wants. If it involves his family friends and coach, them he should ask them.

7 0

2 years ago

Read 2 more answers

According to an article in the Wall Street Journal, KB Home and other builders found demand for new houses increasing in 2017 a

Nadusha1986 [10]

Answer:

Generally speaking, demographic growth can affect the economy quite a lot, but the economy has a very little effect on demographic growth. E.g. the baby boomers were great for the economy during several decades, but there is no clear relationship between population growth and economic activity.

This means that companies like home builders whose demand depends on other factors besides the economy, will be less affected by economic recessions or expansions. E.g. the demographic growth in America was around 0.7% during 2019 and the economy was growing that year.

Actually, the US population has been declining over the last decades. The real growth factor in population has been immigration in the last decades, and that has also been declining lately.

7 0

3 years ago

On December 31, before the closing entries, the following information is available for Jones Company: Service Revenue $10,000 To

madreJ [45]

Answer:

$15,000

Explanation:

Closing retained earnings is the accumulated value of an entity`s profit reserve from its earnings from both current and past accounting periods.Closing retained earnings is calculated by deducting dividend paid from earnings after tax of the current year and adding the balance to opening retained earnings.

= Opening retained earnings + (Earnings after tax - Dividend paid)

Based on the information supplied, the closing retained earnings will be:

Service Revenue 10,000

Total Expenses (6,000)

Operating profit 4,000

Dividend (1,000)

Retained Earnings 3,000

Retained Earnings b/f 12,000

Closing Retained Earnings 15,000

Note: No information in regard of tax, so the operating profit is used as profit after tax.

8 0

3 years ago