A business with a simple capital structure would present only basic earnings per share information in its financial statements.

Question

Quizplus · Accepted Answer

A business with a simple capital structure does not have any potentially dilutive securities, such as convertible debt or stock options. Therefore, basic earnings per share information is sufficient for shareholders to evaluate the company's performance. If the company had a complex capital structure, it would also need to report diluted earnings per share, which takes the potential impact of these securities into account.

A Business with a Simple Capital Structure Would Present Only