When Computing Earnings Per Share,preferred Dividends Are Subtracted from Net

question 6

True/False

When computing earnings per share,preferred dividends are subtracted from net income because the preferred stockholders have the first claim to dividends.

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Definitions:

Intelligence Quotient

A numerical measure of a person's cognitive abilities relative to others, typically determined through standardized tests.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability of an individual at a specific chronological age.

Stanford-Binet Intelligence Scale

A standardized test that assesses intelligence and cognitive abilities in children and adults, used widely in educational and clinical settings.

Mental Age

A measure of an individual's mental ability expressed as the age at which an average individual reaches the same level of performance.