When Computing Earnings Per Share

question 129

Multiple Choice

When computing earnings per share

• A) an adjustment related to preferred stock dividends is made in the numerator and denominator of the earnings per share formula.
• B) an adjustment for the preferred dividends is made in the denominator of the earnings per share formula.
• C) the dividends for cumulative preferred stock are deducted from net income only if the preferred dividends have been declared.
• D) the dividends for cumulative preferred stock are deducted from net income whether or not preferred dividends have been declared.

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Definitions:

Radical Republicans

A faction within the U.S. Republican Party after the Civil War focused on ensuring the rights of freed slaves and implementing harsh reconstruction policies on Southern states.

Reconstruction Policy

Refers to the strategies and laws implemented in the United States after the Civil War (1865-1877) aimed at rebuilding and reinstating the Southern states while transforming society and ensuring the rights of freed slaves.

Southern States

Geographic regions located in the southern part of a country, often characterized by unique cultural, economic, and historical traits.