EPS Is Calculated by Subtracting Preferred Stock Dividends from Net

question 146

Multiple Choice

EPS is calculated by subtracting preferred stock dividends from net income and then dividing by?

• A)Total revenue
• B)Number of shares of common stock outstanding
• C)Book value per share
• D)Dividend yield

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Definitions:

Underapplied

A situation where the allocated or applied costs are less than the actual costs incurred.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted or expected costs.

Unfavorable

A term used in variance analysis to describe a situation where actual results are worse than expected results, leading to a negative impact on financial performance.

Favorable

A term used in finance and accounting to describe results that are better than expected or budgeted.