The denominator of the earnings per share computation includes the weighted average number of common shares outstanding.

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The denominator of the earnings per share computation includes the weighted average number of common shares outstanding. Why use the weighted average instead of the year-end common shares outstanding?

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Financial Reporting and Analysis Using Financial Accounting Information

ISBN: 978-1439080603

12th Edition

Authors: Charles H Gibson

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Question Posted: Jun 23, 2012 06:27 AM

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The denominator of the earnings per share computation includes the weighted average number of common shares outstanding.

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Since earnings pertain to an entire year they should be rel...View the full answer

Financial Reporting and Analysis Using Financial Accounting Information

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