Earnings per share must be reported on the face of every income statement that is prepared in accordance with
A)generally accepted accounting principles.
B)the National Association of State Boards of Accountancy standards.
C)ethical standards set by the American Institute of Certified Public Accountants.
D)the laws of the federal government.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is a required disclosure according to generally accepted accounting principles (GAAP). It provides important information to investors about the profitability of a company on a per share basis. Therefore, option A is the correct choice. Option B and C are not relevant as they do not relate to financial reporting standards. Option D is too narrow and does not include all possible income statements.

Earnings Per Share Must Be Reported on the Face of Every