When Computing Earnings Per Share, Cumulative Preferred Dividends Not Declared

question 25

Multiple Choice

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

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

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Definitions:

Metacognitive Skills

Abilities that enable an individual to understand, control, and manipulate their own cognitive processes.

Egalitarian

Referring to the principle that all people are equal and deserve equal rights and opportunities.

Autonomy

Autonomy refers to the capacity and right of people to make their own choices and govern themselves independently.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobes, involved in decision making, problem-solving, and controlling social behavior.