Which of the following statements is false about earnings per share:
A)is a required disclosure on the face of the income statement
B)is a common size measure of a company's earnings performance
C)is the amount that each stockholder will receive as dividends that period
D)reflects the amount of a company's earnings belonging to each shareholder on a per share basis

Question

Quizplus · Accepted Answer

Earnings per share is not the amount that each stockholder will receive as dividends that period. Rather, it is the amount of a company's earnings belonging to each shareholder on a per share basis. It is calculated by dividing the net income by the number of outstanding shares of common stock.

Which of the Following Statements Is False About Earnings Per