In Computing the Earnings Per Share of Common Stock, Noncumulative

question 9

Multiple Choice

In computing the earnings per share of common stock, noncumulative preferred dividends not declared should be

• A) deducted from the net income for the year.
• B) added to the net income for the year.
• C) ignored.
• D) deducted from the net income for the year, net of tax.

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Definitions:

Neuron

Morphologic and functional unit of the nervous system, consisting of the nerve cell body, the dendrites, and the axon; also called nerve cell.

Synaptic Vesicles

Small organelles within neurons that store and release neurotransmitters at the synapse.

Neurotransmitters

Chemicals released by neurons to transmit signals across a synaptic gap to a target cell.

Presynaptic Terminals

The ends of axons where neurotransmitters are stored before being released into the synaptic cleft in response to a nerve impulse.