Earnings Per Share EPS Formula, Calculation

In other words, somebody who owns one or more common shares is part-owner of the corporation which issued those shares. Although many investors don’t pay much attention to the EPS, a higher earnings per share ratio often makes the stock...

Is standard costing GAAP?

A variance can also be used to measure the difference between actual and expected sales. Thus, variance analysis can be used to review the performance of both revenue and expenses. This principle requires accountants to use the same reporting method procedures across...

How to Calculate Retained Earnings Formula and Examples

It is the opposite of the payout ratio, which measures the percentage of profit paid out to shareholders as dividends. So, the amount of income summary in the journal entry above is the net income or the net loss of the company for the period. Hence, the retained...