Which of the following transactions doesn't affect earnings per share?
A)A 2-for-1 common stock split.
B)A 10% common stock dividend distribution.
C)Accruing revenue at year-end.
D)Issuing additional shares of preferred stock.

Question

Quizplus · Accepted Answer

Earnings per share is calculated by dividing net income by the average number of shares of common stock. Issuing additional shares of preferred stock doesn't affect the ratio.

Which of the Following Transactions Doesn't Affect Earnings Per Share