- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 2. Analyzing Income Statements
- Subject 6. Income Statement Ratios and Common-Size Analysis
CFA Practice Question
Basic earnings per share can be found in a(n) ______.
B. income statement
C. cash flow statement
A. balance sheet
B. income statement
C. cash flow statement
Correct Answer: B
Companies present their basic and diluted earnings per share on the face of the income statement.
User Contributed Comments 3
| User | Comment |
|---|---|
| Emily1119 | Why the answer is not A? Earning per share is in in balance sheet in Audited report |
| vatsal92 | @emily1119 Balance Sheet consists of Liabilities, assets and St. Equity.. Whereas earnings per share is solely based on income/earnings which is obtained from income statement. And the EPS in audited reports is calculated from income statement itself and then shown in BS. |
| Fpenae | EPS= Net income/nº of shares. Net income appears in the Income Statement. |