Preferred Share Dividends ________ Earnings Available to Common Shareholders

question 34

Multiple Choice

Preferred share dividends ________ earnings available to common shareholders.

• A) increase
• B) decrease
• C) due not effect
• D) not enough information to tell

---

Definitions:

Expenses

The costs incurred in the process of earning revenue, including operating costs, taxes, interest, and cost of goods sold.

Cash Investments

Funds placed into financial instruments or assets with the expectation of preserving capital and generating a return.

Capital

The wealth in the form of money or assets owned by an individual or organization, available for investment.

Assets

Resources owned or controlled by a business that are expected to bring future economic benefits.