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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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Answer:

$36,160

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3 years ago

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2 years ago

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3 years ago

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is to:

MArishka [77]

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3 years ago

Angela is part of the senior management of Fifian Inc., an event management company. She along with other members of the senior

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Full question:

Angela is part of the senior management of Fifian Inc., an event management company. She along with other members of the senior management plans the annual budget of the company. Angela, however, is not required to take inputs from or involve the middle and supervisory managers of the company in this planning process. In the given scenario, Fifian Inc. most likely uses _____.

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Answer:

In the given scenario, Fifian Inc. most likely uses top-down budgeting

Explanation:

Top-down budgeting relates to a budgeting system where senior management equips a high-level estimate for the company. Through top-down budgeting, the company’s administration views prior practices and contemporary market circumstances.

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3 years ago