Earnings per share of common stock (assuming no convertible or other potentially dilutive securities outstanding)
A)equals net income attributable to common stock divided by the weighted average number of common shares outstanding during the period.
B)equals net income attributable to common stock divided by the number of common shares outstanding at the beginning of the period.
C)equals net income attributable to common stock divided by the number of common shares outstanding at the end of the period.
D)all of the above.
E)none of the above.

Question

Quizplus · Accepted Answer

Earnings per share of common stock is calculated by dividing the net income attributable to common stock by the weighted average number of common shares outstanding during the period. This takes into account any changes in the number of shares outstanding during the period, which is not reflected in the number of shares outstanding at the beginning or end of the period. Therefore, options B and C are not correct. Option D is incorrect as it implies all choices are correct, which is not the case.

Earnings Per Share of Common Stock (Assuming No Convertible or Other