Earnings per share
A) is easy to manipulate.
B) may overstate the profitability of the company.
C) does not separate cash sales from credit sales on the income statement.
D) all of the above.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) can be manipulated through accounting practices, may overstate a company's profitability by focusing on net income without considering the company's actual cash flow, and does not distinguish between cash and credit sales as it is a measure derived from the net income on the income statement, which aggregates all revenues.

Earnings Per Share