The Denominator Used in the Calculation of Basic Earnings Per

question 98

Multiple Choice

The denominator used in the calculation of basic earnings per share is the

• A)number of common shares outstanding at the end of the year.
• B)number of preferred shares outstanding at the end of the year.
• C)weighted average number of common shares outstanding during the year.
• D)weighted average number of common shares and preferred shares outstanding during the year.

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Definitions:

Ledger

A comprehensive collection of a company's financial transactions, recorded in a structured and systematic manner.

Petty Cash Fund

A small amount of cash kept on hand, used for paying minor expenses to avoid the complexity of writing cheques.

Cash Short

A situation where the amount of cash on hand is less than the recorded amount, often indicating errors or theft.

Office Supplies

Consumable items that are used in offices on a day-to-day basis for administrative and office-related tasks, such as paper, pens, and staples.