When Computing Earnings Per Share, Noncumulative Preferred Dividends Not Declared

question 96

Multiple Choice

When computing earnings per share, noncumulative preferred dividends not declared should be:

• A) Ignored.
• B) Deducted from earnings for the year.
• C) Added to earnings for the year.
• D) Deducted, net of tax effect, from earnings for the year.

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Definitions:

Read Lips

The skill of understanding spoken words by visually observing the movement of a speaker's lips, commonly used by the hearing impaired.

Best Ear

Term referring to the ear (either left or right) with better hearing capability, often used in hearing tests or evaluations.

Auscultation

The process of listening for sounds within the body.

Percussion

Tapping the body lightly but sharply to determine the position, size, and consistency of an underlying structure.