The Amount of Earnings Per Share Is Usually Computed

question 39

Multiple Choice

The amount of earnings per share is usually computed:

• A)For both preferred and common stock.
• B)For common stock by deducting the dividends on preferred stock from net income and dividing the remaining amount by the weighted average number of common shares outstanding.
• C)By dividing net income by the combined number of preferred and common shares.
• D)On the basis of the number of shares outstanding at year-end,regardless of changes in the number of shares during the year.

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Definitions:

Crow's Feet

Fine lines and wrinkles that form around the outer corners of the eyes, often associated with aging or frequent exposure to sunlight.

Depressor Anguli Oris

A facial muscle associated with frowning, drawing the corners of the mouth downward.

Suprahyoid

A group of muscles located above the hyoid bone that function in swallowing and the movement of the tongue.

Infrahyoid

Referring to a group of muscles located below the hyoid bone in the neck, involved in swallowing and stabilizing the hyoid bone.