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:

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link the diverse parts of an organization.

Line Positions

Jobs or roles within an organization that are directly involved in core business operations and responsible for achieving its primary objectives.

Authority

The legitimate power or right granted to an individual or entity to make decisions, give orders, and enforce obedience.

Executive Marketing Officer

A top-level executive responsible for the overall marketing strategies and efforts of an organization.