The amount earned during the accounting period on each outstanding share of common stock is called ________.
A) dividend per share
B) earnings per share
C) net profits after taxes
D) book value per share

Question

Quizplus · Accepted Answer

The amount earned during the accounting period on each outstanding share of common stock is called earnings per share (EPS). Dividend per share refers to the amount paid out to shareholders as dividends, net profits after taxes refers to a company's overall profitability after taxes, and book value per share refers to the value of a company's assets per outstanding share of stock. Out of these options, only earnings per share directly relates to the amount earned on each outstanding share of common stock.

The Amount Earned During the Accounting Period on Each Outstanding