Which of the following statements is true about earnings per share?
A)It is the only ratio required to be disclosed on the income statement
B)It assesses the ability of the firm to pay their bills as they come due
C)It evaluates the efficiency with which the company uses their assets to generate sales revenue
D)It represents the profit available to the preferred shareholders

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is the only ratio required to be disclosed on the income statement, as it indicates the portion of a company's profit allocated to each outstanding share of common stock.

Which of the Following Statements Is True About Earnings Per