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

question 101

Multiple Choice

In determining basic earnings per share,the annual dividend on convertible cumulative preferred shares,which are not a dilutive convertible security,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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Definitions:

Action Potential

A short-lasting event in which the electrical membrane potential of a cell rapidly rises and falls, allowing nerve cells to communicate.

Contractile Organelle

A cell component that is involved in the contraction and movement processes, such as muscle fibers.

Electromyogram

A diagnostic procedure to assess the health of muscles and the nerve cells that control them by recording the electrical activity produced by skeletal muscles.

Sarcolemmas

The cell membranes of muscle fibers that enclose the cytoplasm and organelles of muscle cells.