Earnings per share differs from operating cash flow per share in that:
A)EPS uses net income and operating cash flow uses actual cash flow per share.
B)EPS is a market ratio.
C)EPS uses less shares in its calculation than cash flow per share does.
D)EPS uses the balance sheet and the income statement.

Question

Quizplus · Accepted Answer

EPS uses net income which is recorded on the income statement whereas operating cash flow per share uses actual cash flow from operating activities which is recorded on the statement of cash flows.

Earnings Per Share Differs from Operating Cash Flow Per Share