In the calculation of basic earnings per share, why is the weighted average number of common shares

Question:

In the calculation of basic earnings per share, why is the weighted average number of common shares used instead of the number of common shares at the end of the year?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

Question Posted: