Asked by Diana Mitrea Stoicescu on May 19, 2024
Verified
Which of the following statements regarding earnings per share is not correct?
A) Earnings per share can be reported on the income statement.
B) The numerator is net income.
C) The denominator is the average number of shares of common stock outstanding.
D) Earnings per share does not have to be disclosed on the income statement or the notes to the financial statements.
Earnings Per Share
A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability on a per-share basis.
Income Statement
A financial statement that shows a company’s revenues and expenses over a specific period, leading to the net income or loss for the period.
- Acquire knowledge on the requirements for disclosing financial reports and earnings per share.
Verified Answer
SN
Sandeep NagreMay 22, 2024
Final Answer :
D
Explanation :
Earnings per share must be disclosed on the income statement or in the notes to the financial statements according to accounting standards.
Learning Objectives
- Acquire knowledge on the requirements for disclosing financial reports and earnings per share.
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