Earnings Per Share Is Calculated by Dividing

question 130

Multiple Choice

Earnings per share is calculated by dividing

• A)revenue by weighted average shareholders' equity.
• B)revenue by the weighted average number of common shares.
• C)profit by weighted average shareholders' equity.
• D)profit by the weighted average number of common shares.

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Definitions:

Investment Opportunity

A situation or venture that has the potential to generate a return on investment.

Average Operating Assets

The mean worth of resources employed in the functioning of a company throughout a given timeframe.

Sales

The transactions involving the exchange of goods or services for money, considered the primary revenue source for a business.

Year 2

Refers to the second year of a specified time frame, operation, or financial reporting period.