In Determining Basic Earnings Per Share, the Annual Dividend on Nonconvertible

question 31

Multiple Choice

In determining basic earnings per share, the annual dividend on nonconvertible cumulative preferred shares should be:

• A)Deducted from net income whether declared or not.
• B)Deducted from net income only if declared.
• C)Added back to net income whether declared or not.
• D)Disregarded.

---

Definitions:

Mesozoic

An era of geological time from about 252 to 66 million years ago, known for the dominance of dinosaurs and the development of mammals and flowering plants.

Dominant Creatures

Referring to the species that exert the most influence over their environment or ecosystem, often due to their population size, biomass, or ecological role.

Diagnostic Features

Characteristics or attributes that help in the identification or diagnosis of conditions, diseases, or differentiating among various options.

Ancient Tree Sap

Fossilized resin from prehistoric trees, often preserved and sometimes containing inclusions of insects or plants; famously known as amber.