19. Which of the following statements relating to earnings per share is not true? __________ It is an often-reported measure of the potential return to stockholders. It is a financial measure. It is a cash measure. It is based on the accrual basis of accounting.

19. Which of the following statements relating to earnings per share is not true? __________ It is an often-reported measure of the potential return to stockholders. It is a financial measure. It is a cash measure. It is based on the accrual basis of accounting.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which element of financial performance decreases in economic benefits during the accounting period…

A: Accounting equations are on the basis of the dual aspect concept of accounting. It means that every…

Q: A firm’s earnings are a true representation of cash flows available to the stockholders. A) True B)…

A: Earnings of the business means how much net income has been earned by the business. Stockholders are…

Q: s not useful for analyzing changes in financial state s useful in analyzing relationships within a…

A: Vertical analysis of financial statements is a where each line item is expressed as a percentage…

Q: All are financial measures, except: A. Market share B. Revenue growth C. Earnings per share D.…

A: Solution: All are financial measures, except "Reduction of past due accounts".

Q: Working Capital is a measure used to assess the liquidity of the company, computed as current assets…

A: The Answer is false Refer step2 for explanation

Q: In the statement of cash flows, it is necessary to break down the change in shareholders' equity…

A: Cash flow statement is the statement showing cash inflows and outflows of a particular entity. It is…

Q: Cash Basis Accounting Question: How can cash basis accounting often mislead financial statements in…

A: Financial statements are formal records that provide a summary of an organization's financial…

Q: stockholders equity, paid in capital , retained earnings and net

Q: Which answer is correct?

A: Explanation of Investments in Stocks:Investments in stocks involve purchasing shares of a company's…

Q: 6. When reporting basic and diluted earnings per required to include a schedule or note identifying…

A: EPS is a fundamental financial metric that provides insights into a company's profitability on a…

Q: Why are the income statement and cash flow statement attractive to investors when it comes to…

A: Introduction: It took place entirely inside a business, including the management, investing, and…

Q: What is the primary purpose of the income statement? A) To report the company's cash flow activities…

A: The income statement is a crucial financial report that provides a detailed overview of a company's…

Q: Retained earnings, as a form of equityfinancing, area. gross earnings.b. profits before taxes.c.…

A: Equity financing: It is a method to raise money for business operations and growth. Retained…

Q: a) What is the purpose of internal earnings targets? (b) What is the risk associated with internal…

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How did you calculate cash flow to stockholders? How did you calculate beginning and ending equity?

A: Cash flow to stock holders is the net amount paid to stockholders during the year. It is calculated…

Q: Which statement cash of flows shows the inflows and outflows of the issue and repurchase of stock?…

A: Cash flow is a statement that provide data regarding cash inflow and cash outflow of the company…

Q: m retained earningsi or the fact that

A: Retained earnings are part of equity of the owner. It is the income earned and retained in business.…

Q: If a company shows a profit on its Income Statement, how will this affect (a) the Balance Sheet and…

A: Explanation - There are three statements of the organization which show different accounting…

Q: What are the key differences between accrual accounting and cash accounting, and how do these…

A: Accrual accounting and cash accounting are two fundamental methods used in recording financial…

Q: Ratios or Percentages Definitions 1. Inventory turnover ratio 2. Dividend yield ratio 3. Return on…

A: Financial ratios enable the standardization of the reporting of a firm's financial performance and…

Q: The amount of cash a company paid in dividend can be found in the balance sheet. True O False

A: When a company declares dividend , dividend payable account is credited and retained earnings is…

Q: Explain why the following statement is true: “The retained earningsaccount, as reported on the…

A: The account of retained earnings is helpful in indicating the claim with respect to the asset.…

Q: In preparation of cash flow statement, declaration and payment of dividends on company stock is…

A: Cash flow statement is a statement which shows all cash inflows and cash outflows of the business…

Q: A financial document that indicates the success or failure of a business trading .over a period of…

A: Answer : An Income Statement

Q: Which of the following is not one of the primary considerations management must make before a cash…

A: Answer: Primary considerations are those which directly impact any decisions made for the company.…

Q: The value of anything can be determined if you know the amount and timing of related: Net…

A: Cashflow helps to calculate Income statement. From income statement, we can calculate Earnings…

Q: 1. What is the general trend of the company’s current assets? Did you observe any account with…

A: "Since you posted a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: 1(a) State with reason whether the following statements are true or false (iii) Net Profit is…

A: Following is the answer to the given question

Q: Why are the income statement and cash flow statement so important to investors in terms of financial…

A: Answer: The financial reporting of the company consists of Statement of financial position Income…

Q: Three commonly used measures of solvency are the debt-to-equity ratio, the times interest earned…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is the general trend of the company’s current assets? Did you observe any account with…

A: In case of multiple sub-parts, only first 3 parts shall be answered. The trend analysis can be…

Q: Investigate and assess existing literature to establish the relative importance of the income…

A: Introduction: A cash flow statement is a financial statement that shows the inflows and outflows of…

Q: How does the declaration of a cash dividend affect a company’s assets, liabilities, and equity?a. It…

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: 1. Which of the following would appear first in a statement of retained earnings? Choices; Cash…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 23 Which element of financial performance decreases in economic benefits during the accounting…

A: Accounting equations are on the basis of the dual aspect concept of accounting. It means that every…

Q: Why would "Stock-based Compenstion" be added back to earnings in operating activities in a Statement…

A: In a cash flow statement, cash flows from operating activities are those activities which are done…

Q: Which of the following is not included in the definition of earnings persistence?

A: The magnitude of the earnings is not included in the definition of earnings persistence. Earnings…

Q: Which of the following statements is not true? a) The return on shareholders’ funds can be…

Question

19. Which of the following statements relating to earnings per share is not true? __________

It is an often-reported measure of the potential return to stockholders.

It is a financial measure.

It is a cash measure.

It is based on the accrual basis of accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

IDENTIFY THE EFFECT OF THE FOLLOWING TRANSACTION TO THE RISK OF MATERIAL MISSTATEMENT TO FINANCIAL STATEMENTS. The company has shown an ability to generate a positive cash flow from operations, while reporting earnings and earnings growth. Does it have a: A. INCREASE effect B. DECREASE effect C. NO EFFECT effect
7.-The accounting profit of a company always represents available cash flows. true or false? (Class exercise)
Which of the following does not appear in a statement of retained earnings? Choices; Net loss Preference share dividend Other comprehensive income Prior period error
The cost of retained earnings is less than the cost of ordinary shares because of *a. the issuance cost.b. agency costs of free cash flow.c. the taxation on earnings.d. the trust fund doctrine.
. These are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants. a. Liabilities b. Expense c. Loss d. Cost
Why are income statements and cash flow statements both valuable to investors? Analyze the income statement's and cash flow statement's information content in relation to one another.
You are trying to assess the well-being of the common stockholders of a company. Which of the following ratios would help you make such an assessment?(a) Debt ratio(b) Current ratio(c) Book value per share(d) Total asset turnover
Contribution received from shareholders will be recorded as. a. Dr Receivables Cr Cash account b. Dr Capital Cr Cash account c. Dr Cash account Cr Capital d. Dr Cash account Cr receivables
Read the following statements regarding financial statements. Select the correct statement(s). A. The income statement of a company indicates whether it is making or losing money during a financial period. B. The cash flow statement provides information on how the company generated cash and how the used its cash during the reporting period. company C. A company's working capital is the current liabilities minus the current assets of the company. D. The earnings per share (EPS) can be calculated from information provided by the financial statements by dividing earnings available to common stockholders (shareholders) by the number of shares of common stock outstanding. Mark for Review What's This?
Explain why the following statement is true: The retained earnings account reportedon the balance sheet does not represent cash and is not “available” for dividend paymentsor anything else.
Which of the following is not a factor in producing earnings forecasts? a) Estimating the level of dividends b) Separation of recurring and nonrecurring components c) Recognizing potential earnings management d) Recognizing potential income smoothing
Which one of the following normally has a net debit balance? A. Contributed capital that is in shareholders’ equity. B. Retained earnings that is in shareholders’ equity. C. Dividends that decrease retained earnings Revenues that increase retained earnings. D. Revenues that increase retained earnings