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Which of the following earnings per share figures must be disclosed on the face of the income statement?

A) The effect on EPS from operations of a discontinued division, net of taxes.
B) The effect on EPS from an extraordinary item, net of taxes.
C) EPS on income from continuing operations.
D) All of the above.

User Ilinykhma
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1 Answer

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Final answer:

The correct answer is D) All of the above. All of these earnings per share (EPS) figures must be disclosed on the face of the income statement. Let's break down each option:

Step-by-step explanation:

  • A) The effect on EPS from operations of a discontinued division, net of taxes: When a company decides to discontinue a division, the impact on EPS must be disclosed on the income statement. This is important information for investors to assess the overall financial performance of the company.
  • B) The effect on EPS from an extraordinary item, net of taxes: Extraordinary items refer to significant events or transactions that are considered rare and outside the normal course of business. Any impact on EPS from these items must be disclosed on the income statement.
  • C) EPS on income from continuing operations: This figure represents the earnings per share generated from the company's ongoing operations. It is a key measure of profitability and must be disclosed on the income statement.

Therefore, all of these EPS figures (A, B, and C) must be disclosed on the face of the income statement.

User Nailah
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