In Determining Basic Earnings Per Share,the Annual Dividend on Nonconvertible

question 56

Multiple Choice

In determining basic earnings per share,the annual dividend on nonconvertible cumulative preferred shares should be:

• A) Added back to net income whether declared or not.
• B) Disregarded.
• C) Deducted from net income only if declared.
• D) Deducted from net income whether declared or not.

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