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

Question

Quizplus · Accepted Answer

EPS (Earnings Per Share) is calculated using net income, whereas operating cash flow per share is based on the actual cash flow from operating activities. This highlights the difference in the basis of calculation between the two metrics, with EPS focusing on profitability and operating cash flow per share focusing on cash generation.

Earnings Per Share Differs from Operating Cash Flow Per Share