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:

Benefit

An advantage, gain, or positive outcome derived from a specific action, decision, or product.

Satisfaction

A feeling of fulfillment or contentment that comes from achieving one's goals or meeting one's needs and desires.

Civilian Goods

Products and services intended for use by the general public rather than for military purposes.

Real Cost

The total cost of producing a good or service, including the opportunity cost of alternative uses of resources and inputs.