CJB's attempted to explain that the increase in EPS is that despite revenue remaining the same from prior years that operating performance improved due to cost controls which lead to a decrease in expenses. As an accountant you know that if this was tru
CJB's attempted to explain that the increase in EPS is that despite revenue remaining the same from prior years that operating performance improved due to cost controls which lead to a decrease in expenses. As an accountant you know that if this was tru
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CJB Inc.'s net income recently decreased from the prior year However, basic EPS increased from $5.75 to $5.80.
CJB's attempted to explain that the increase in EPS is that despite revenue remaining the same from prior years that operating performance improved due to cost controls which lead to a decrease in expenses. As an accountant you know that if this was true then net income would have increased.
How could CJB's EPS increase when net income decreased? (the auditors have verified the calculations and they are correct)
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