How to Calculate Earnings Per Share: Definition & Formula


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question 1 of 3

Which of the following financial statements is used to calculate net income?

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1. How do dividends differ from preferred dividends?

2. The number of common shares outstanding can be found by _____.

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About This Quiz & Worksheet

This quiz will ask you about definitions related to earnings per share and their calculation. The questions will ask you to finish the sentence or just to choose the appropriate definition from the choices provided. Some of the areas covered will include net income and preferred dividends.

Quiz & Worksheet Goals

The quiz will test you on these definitions:

  • Preferred dividends
  • Earnings per share
  • Net income
  • Common shares
  • Statement of Owner's Equity

Skills Practiced

The quiz will help you practice these skills:

  • Reading comprehension - ensure that you draw the most important information from the related earnings per share lesson
  • Interpreting information - verify that you can read information regarding net income and interpret it correctly
  • Information recall - access the knowledge you've gained regarding common shares
  • Knowledge application - use your knowledge to answer questions about equity

Additional Learning

Finish the quiz and head to the corresponding lesson How to Calculate Earnings Per Share: Definition & Formula. The lesson will help you cover the following topics:

  • Explore the meaning of earnings per share
  • Understand potential investors
  • Describe the formula for earnings per share
  • Characterize net income and owner's equity