Name Two Components of Shareholders' Equity and Describe What Each

question 70

Essay

Name two components of shareholders' equity and describe what each consists of.

---

Definitions:

Earnings Per Share

A financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock, measuring its profitability on a per-share basis.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines for preparing financial statements.

GAAP

Stands for Generally Accepted Accounting Principles, which are a collection of commonly-followed accounting rules and standards for financial reporting in the United States.

If Converted Method

An accounting method used to calculate diluted earnings per share, assuming all convertible securities were converted to common stock.