In Calculating Diluted Earnings Per Share, Dividends on Non-Convertible Cumulative

question 62

Multiple Choice

In calculating diluted earnings per share, dividends on non-convertible cumulative preferred shares should be

• A) ignored.
• B) deducted from net income whether declared or not.
• C) deducted from net income only if declared.
• D) added back to net income whether declared or not.

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Definitions:

RAM

Random Access Memory, a type of computer memory that can be accessed randomly and is used for storing running programs and temporary data.

CPU

The Central Processing Unit, the primary component of a computer that performs most of the processing inside a computer.

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Pertaining to software whose source code is made freely available for modification and distribution.

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Computers dedicated to managing network resources, serving requests for data, applications, and services from clients.