Question

Which of the following is not true about EPS? Multiple Choice It must be reported on operating income. It must be reported by all corporations whose stock is publicly traded. None of these answer choices are correct. It must be reported separately for discontinued operations.

Answer 1

It must be reported on operating income is not true about EPS.

Option A

Explanation:

EPS is called "Earning Per Share" which is calculated as company's profit which has to be divided by the shares that are outstanding of its common stock. The number that comes up as the result shows a company's profitability. It is generally common for the companies to report EPS. The higher the "EPS", the more profit the company earns. How much a company earns is shown in the given company's EPS.