Strait Company Has Outstanding Shares as Follows: 16,000 Common Shares

question 146

Multiple Choice

Strait Company has outstanding shares as follows: 16,000 common shares and 5,000 preferred shares. What is the number of shares that should be used in the denominator to compute earnings per share?

• A) 5,000
• B) 16,000
• C) 11,000
• D) 21,000

---

Definitions:

Sparkline Charts

Compact, inline charts embedded in a spreadsheet cell or text to provide a visual snapshot of data or trends.

Win/Loss

A metric or record used to track outcomes of competitive events, often seen in sales, sports, and gaming.

Vertical Split Bar

A tool in user interfaces that allows the division of the screen or window into separate viewing areas vertically.

Panes

Sections or areas in a software interface designed to display different types of information simultaneously or to allow interaction with different aspects of the program.