In Calculating Basic Earnings Per Share, If the Preferred Shares

question 138

Multiple Choice

In calculating basic earnings per share, if the preferred shares are cumulative, the amount that should be deducted as an adjustment to the numerator is the

• A) annual preferred dividend.
• B) preferred dividends in arrears.
• C) annual preferred dividends net of income tax.
• D) preferred dividends in arrears net of income tax.

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Definitions:

Hand Sanitizer

A liquid or gel, often alcohol-based, used to reduce infectious agents on the hands, providing a cleaning effect without the need for water.

Chlorhexidine

An antiseptic used in mouthwash and wound cleansers to reduce bacteria and prevent infections.

Intravenous Line

A medical device used to administer medication, fluids, and nutrients directly into a vein.

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Gloves that have been treated to eliminate all forms of microbial life and are used in medical procedures to maintain a sterile environment.