Which of the Following Is the Reason That Preferred Dividends

question 19

Multiple Choice

Which of the following is the reason that preferred dividends are deducted from net income in calculating earnings per share?

• A)Because preferred dividends are not paid from net income.
• B)Because preferred dividends are not a part of stockholders' equity.
• C)Because preferred dividends are paid to preferred stockholders,not common stockholders.
• D)Because preferred dividends are not paid until all common stockholders have received their dividends,so preferred dividends are not relevant in the formula and so must be taken out of the equation.

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Definitions:

Asynchronous Messages

Communication where messages are sent and received at different times, allowing participants to engage according to their own schedules.

Instantaneous

Occurring or done in an instant or immediately; without any noticeable delay.

Communication Codes

The system of symbols, signs, or rules used within a particular context or community for the purpose of conveying messages and meanings.

Paralanguage

The non-verbal elements of communication used to modify meaning and convey emotion, such as tone of voice, loudness, and pitch.