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When Reporting Basic and Diluted Earnings Per Share, Companies Are

question 55

Essay

When reporting basic and diluted earnings per share, companies are required to include a schedule or note identifying and reconciling the numerators and denominators used in their calculations. What other information must be included in the schedule or note in the financial statements?


Definitions:

Upsloping Line

A line on a graph that shows an increase in the value of a variable on the vertical axis as the value of a variable on the horizontal axis increases, typically seen in supply curves.

Independent Variable

A variable in an experiment or model that is manipulated or changed to observe its effect on a dependent variable.

Dependent Variable

The variable in an experiment or study that is expected to change in response to changes in the independent variable.

Horizontal Axis

In a graph or chart, the x-axis, typically representing time or some independent variable.

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