The comparability of earnings per share across firms is influenced by the relative amount of capital raised by the various firms and by the ability of the firms to manage their reported earnings per share.

Question

Quizplus · Accepted Answer

The statement is true. When firms raise different amounts of capital, it can affect their earnings per share. Additionally, the ability of the firms to manage their reported earnings can also impact comparability.

The Comparability of Earnings Per Share Across Firms Is Influenced