Earnings per share (EPS) can be affected by all of the following except: A) clas

Question

Earnings per share (EPS) can be affected by all of the following except: A) classification of debt as current or long-term B) how the company chose to finance its operation C) the inventory costing method D) the method of depreciation Earnings per share (EPS) can be affected by all of the following except: A) classification of debt as current or long-term B) how the company chose to finance its operation C) the inventory costing method D) the method of depreciation A) classification of debt as current or long-term B) how the company chose to finance its operation C) the inventory costing method D) the method of depreciation

Explanation / Answer

correct option is "A" -Classification of debt as current or long term.

The earning per share is not affected by classification of debt as e have to pay interest on both short term as well as long term debt .Therefore such classification have no effect on EPS

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