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

question 46

Multiple Choice

In determining basic earnings per share, the annual dividend on convertible cumulative preferred shares, which are not a dilutive convertible security, should be:

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

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Definitions:

Winglike Side Projections

Structural or anatomical parts extending from the side of an object or body, resembling the wings of a bird or insect in shape or function.

Bones Of Children

The developing skeletal structure in children, which is characterized by growth plates and undergoes changes as they mature.

Flexible

The quality of being able to bend without breaking; adaptability to change or to accommodate new conditions.

Brittle

Refers to a physical property of materials that break easily without significant deformation.