Which financial ratio is required to be reported on the face of the income statement of publicly-held corporations?
A)Earnings per share
B)Price-earnings ratio
C)Dividend-yield ratio
D)Dividend payout ratio
E)Inventory turnover ratio

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is a common financial ratio used to measure a company's profitability and is required to be reported on the face of the income statement of publicly-held corporations. EPS is calculated by dividing the net income by the total number of outstanding shares. It gives investors an idea of how much profit is being generated for each share of stock. While the other ratios listed are important, they are not required to be reported on the face of the income statement.

Which Financial Ratio Is Required to Be Reported on the Face