Question

Where is earnings per share disclosed in the financial statements?

a) on the statement of owners' equity
b) on the income statement
c) on the balance sheet
d) on the statement of cash flows

Answer 1

Earnings per share (EPS) is a financial ratio disclosed on the income statement, representing a company's profitability per share of stock.

Step-by-step explanation:

Earnings per share (EPS) is a key financial ratio that measures the profitability of a company. It is disclosed on the income statement, which provides information about a company's financial performance over a specific accounting period. EPS is calculated by dividing the company's net income by the number of its outstanding shares. It is a tool that investors widely use to assess a company's financial health and compare it with others.