Asked by Great Amazing on Apr 30, 2024

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Which one of the following indicators is a company prohibited from reporting?

A) cash flow per share
B) basic earnings per share
C) diluted earnings per share
D) price/earnings ratio

Cash Flow Per Share

A measure of a firm's financial flexibility, calculated as operating cash flow divided by the number of outstanding shares.

Prohibited

Actions or activities that are not permitted or allowed by law, regulation, or policy.

Basic Earnings

Earnings calculated by dividing the net income by the total number of outstanding shares, showing the profit earned per share.

  • Master the constituents needed for the disclosure of earnings per share (EPS) details on the financial statements.
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PH
Patrick HoveyMay 06, 2024
Final Answer :
A
Explanation :
Cash flow per share is not a recognized financial metric under Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) because it can be misleading. Unlike earnings per share, cash flow does not directly relate to the performance of a company in a way that can be meaningfully expressed on a per-share basis.