Strait Company Has Outstanding Shares as Follows: 16,000 Common Shares

question 4

Multiple Choice

Strait Company has outstanding shares as follows: 16,000 common shares and 5,000 preferred shares. What is the number of shares that should be used in the denominator to compute earnings per share?

• A) 5,000
• B) 16,000
• C) 21,000
• D) 11,000

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Definitions:

Fishing Trawler

A commercial fishing vessel designed to operate fishing trawls, nets that are towed along the sea floor to catch fish.

Feature

A specific characteristic or function of a product that can be used to meet a customer's needs or solve their problems.

Advantage

A beneficial condition or circumstance that puts one in a favorable or superior position.

Benefit

An advantage, improvement, or gain received from a product or service, contributing to the satisfaction or well-being of a customer.