Earnings per share is an important disclosure because
A) it provides information relevant to the common shareholders.
B) net income disclosed in the financial statements can fluctuate based upon management's intentions.
C) it forces common and preferred shareholders to read the financial statements.
D) it uses net income.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is important because it provides information relevant to common shareholders, indicating how much profit is attributed to each share of common stock.

Earnings Per Share Is an Important Disclosure Because