When Computing Earnings Per Share, Preferred Dividends Are

question 59

Multiple Choice

When computing earnings per share, preferred dividends are:

• A)subtracted from net income and discontinued operations.
• B)subtracted from net income.
• C)added to net income.
• D)added to net income and discontinued operations.

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Definitions:

Simplify

To reduce something to its most basic or uncomplicated form, making it easier to understand or deal with.

R

Often used as a symbol representing the interest rate or rate of return in financial equations.

Budgeted Sales

The projected amount of sales revenue a company expects to earn over a specific period, often used for planning purposes.

Actual Sales

The real revenue generated from goods or services sold, measured within a specific period.