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:

Beginning Retained Earnings

The balance of retained earnings in a company's financial statements at the start of a new accounting period.

Percentage Change

A mathematical calculation that describes the degree of change over time, usually expressed as a percentage to indicate an increase or decrease.

Negative Balance

A situation where the account balance is below zero, indicating that money is owed.

Percentage Increase

The rate at which a specific quantity grows over a particular period of time, expressed as a fraction of the initial value.