Which of the Following Would Be Involved in the Computation

question 29

Multiple Choice

Which of the following would be involved in the computation of earnings per share for a company with a simple capital structure?

• A) Stock options
• B) Number of shares of nonconvertible preferred stock
• C) Dividends declared on nonconvertible preferred stock
• D) Dividends declared on common stock

---

Definitions:

Credit Column

Refers to the right side of a ledger account where entries serve to increase liabilities, revenues, or equity and decrease assets or expenses.

Accounting Cycle

The collective process of recording and processing the accounting events of a company, from when the transaction occurs, to its inclusion in the financial statements.

Financial Statements

Consolidated documents presenting the financial status, performance, and cash flows of a company, primarily comprising the balance sheet, income statement, and statement of cash flows.

Working Paper

Documents that record the detailed information and procedures used in an audit or financial analysis, serving as the basis for conclusions.