When Calculating Earnings Per Share, Dividends Declared on Noncumulative Preferred

question 65

Multiple Choice

When calculating earnings per share, dividends declared on noncumulative preferred stock, but not paid, should be

• A) added to net income in the earnings per share numerator.
• B) accrued in the earnings per share numerator when paid.
• C) deducted from net income in the earnings per share numerator.
• D) deferred from the earnings per share numerator until paid.

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