As Per FASB Guidelines, Earnings Per Share Should Appear on the Face

question 2

True/False

As per FASB guidelines, earnings per share should appear on the face of the income statement.

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Definitions:

Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs incurred in sustaining business operations.

Contribution Margin Ratio

A financial metric that measures the proportion of revenue that exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Variable Expenses

Costs that change in proportion to the level of activity or volume of output in a business.

Fixed Expenses

Costs that do not change in total regardless of the level of production or sales activity, such as rent and salaries.