Question

Select all that apply which of the following must be presented in the financial statement notes relating to eps? (select all that apply.) multiple select question.

O a reconciliation of the numerator and denominator used for basic eps to those used for diluted eps.
O projected eps for the subsequent period. potential common shares not included in diluted eps.
O adjustments to the numerator for preferred dividends.
O material subsequent events that would have affected eps.

Answer 1

The financial statement notes related to EPS should include a reconciliation of basic and diluted EPS, adjustments for preferred dividends, and material subsequent events.

option b is the correct

Step-by-step explanation:

The financial statement notes related to earnings per share (EPS) should include the following:

1. A reconciliation of the numerator and denominator used for basic EPS to those used for diluted EPS. This shows how the calculation of EPS changes when potential dilutive securities are included.
2. Adjustments to the numerator for preferred dividends. This reflects any dividends that need to be deducted from the numerator when calculating EPS.
3. Material subsequent events that would have affected EPS. This includes any significant events or transactions that occurred after the reporting period, but before the financial statements were issued, which may impact the calculation of EPS.

It is not necessary to present projected EPS for the subsequent period or potential common shares not included in diluted EPS in the financial statement notes.