Return on Common Shareholders' Equity Is a Ratio That

question 138

Multiple Choice

Return on common shareholders' equity is a ratio that

• A)is calculated by dividing profit plus preferred dividends by average common shareholders' equity.
• B)shows the relationship between profit available for common shareholders and average common shareholders' equity.
• C)cannot be calculated if the company has preferred shares in addition to common shares.
• D)is calculated by dividing profit plus preferred dividends by average common shareholders' equity and shows the relationship between profit available for common shareholders and average common shareholders' equity.

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Definitions:

Bank Reconciliation

A process that explains the difference between the bank balance shown in an organization's bank statement, as provided by the bank, and the corresponding amount shown in the organization's own accounting records at a particular point in time.

Bank Reconciliation

The process of comparing and aligning a company’s financial records with those shown in its bank statement to ensure accuracy and completeness.

Bank Service Charges

Fees charged by banks for accounts and various banking services, such as monthly maintenance or transaction fees.

NSF Checks

Checks that cannot be processed due to insufficient funds in the account on which they are drawn.