The GAAP requires that corporations report both basic and diluted earnings per share.

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This statement is true. The Generally Accepted Accounting Principles (GAAP) require that corporations report both basic and diluted earnings per share. Basic earnings per share are calculated by dividing the net income by the total number of outstanding common shares, while diluted earnings per share account for the potential dilution of earnings if certain securities, such as stock options or convertible bonds, were to be exercised or converted into common stock. This information is important for investors to assess a company's financial performance and potential future earnings.

The GAAP Requires That Corporations Report Both Basic and Diluted