If a Company Has Noncumulative Preferred Stock, Basic Earnings Per

question 19

True/False

If a company has noncumulative preferred stock, basic earnings per share is equal to net income less preferred dividends declared divided by the number of weighted average common shares outstanding.

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Definitions:

Cohesive Forces

Attractive forces between similar molecules that hold a substance together, such as the attraction between water molecules.

Surface Tension

The elastic tendency of a fluid surface which makes it acquire the least surface area possible, acting like a stretched elastic membrane.

Tracheal Tubes

Tubes that make up part of the respiratory system in insects, allowing gas exchange directly with body cells.

Spiracles

Openings on the surface of some animals, such as insects, spiders, and some fish, which lead to respiratory systems, allowing air to enter the body.