EPS (Earnings Per Share) Is a Key Measure of a Business's

Multiple Choice

EPS (Earnings Per Share) is a key measure of a business's success. Which statement below is true regarding EPS and a company's financial statements?

A) The EPS calculation never takes into consideration preferred shares or preferred shares dividends.
B) EPS is based on the number of common shares outstanding at the end of an accounting period.
C) An EPS figure should be calculated and presented for each significant element of net income on the income statement.
D) EPS based on the actual outstanding number of common shares of stock is called diluted EPS.