Show earnings per share, Accounting Basics

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Q. Show Earnings per share?

Earnings per-share amounts are based upon the weighted average number of common as well as common equivalent shares outstanding during the year. Common equivalent shares are debarred from the computation in periods in which they have an ant dilutive effect.

As you proceed through the remaining chapters you are able to see the accounting theories introduced in this chapter being applied. In section 6 for instance we discuss why sales revenue is recognized and recorded only after goods have been delivered to the customer. So far, we have used service companies to illustrate accounting techniques. Section 6 introduces merchandising operations. Merchandising companies such like clothing stores buy goods in their finished form and sell them to customers.


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