When Computing Earnings Per Share, Noncumulative Preferred Dividends Not Declared

question 96

Multiple Choice

When computing earnings per share, noncumulative preferred dividends not declared should be:

• A) Ignored.
• B) Deducted from earnings for the year.
• C) Added to earnings for the year.
• D) Deducted, net of tax effect, from earnings for the year.

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Definitions:

Single Seed Leaf

Characteristic of monocots, referring to plants that emerge from the seed with only one initial leaf.

Vascular Plants

Plants that have specialized tissues for conducting water and nutrients, including ferns, gymnosperms, and angiosperms.

Scientific Names

Formal, standardized naming system for organisms, based on Latin and Greek words, that consists of a genus and species designation.

Latin

An ancient Indo-European language of the Italic branch, historical language of the Roman Empire, and a foundation for many modern languages' vocabulary and grammar.