Question

Which of the following statements regarding earnings per share​ (EPS) is​ incorrect?A.EPS reports the amount of income​ (loss) for each share of the​ company's issued common stock.B.EPS is the most widely used of all business statistics.C.EPS for income from continuing operations must be reported on the face of the income statement.D.When computing​ EPS, preferred dividends are subtracted from net income because the preferred stockholders have the first claim to dividends.

Answer 1

Answer:

A. EPS reports the amount of income​ (loss) for each share of the​ company's issued common stock.

Explanation:

As we know that

Earning per share (EPS) is

= (Net income - preference dividend) ÷ (Number of outstanding shares)

According to this, the d option is correct also the b option and c are correct as it represents if there is an income from continuing operations  so it should be reported in the income statement and it is most widely used for all the business

But the last option is not correct as earning per share reports the income or loss for each and every share based on the outstanding common stock

Hence, the option A is not correct