Question

Which of the following statements regarding earnings per share is not correct? The denominator is the...

Which of the following statements regarding earnings per share is not correct?
The denominator is the average number of shares of common stock outstanding.
The numerator is net income.
It can be reported on the income statement.
It does not have to be disclosed on the income statement or the notes to the financial statements.
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Answer #1

In connection with earning per share the denominator is the average number of shares of common stock outstanding, and numerator of net income is Correct. Earning per share can be reported on the income statement is also correct statement.

But it does not have to be disclosed on the income statement or the notes to the financial statement is not correct.

so answer is d) It does not have to be disclosed on the income statement or the notes to the financial statements.

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