XYZ Paid $10,000 in Dividends in January of the Current

question 34

Multiple Choice

XYZ paid $10,000 in dividends in January of the current year to its preferred shareholders. The preferred stock is nonconvertible and noncumulative. The dividend:

• A) Will be added to the denominator of the earnings per share fraction for the current year.
• B) Will be added to the numerator of the earnings per share fraction for the current year.
• C) Will be subtracted from the numerator of the earnings per share fraction for the current year.
• D) May not affect earnings per share depending on the declaration date.

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Definitions:

Standard Cost System

A cost accounting system that uses standard costs for products or services to compare against actual costs and analyze variances for management control.

Work In Process Inventory

Goods that are in the process of being manufactured but are not yet complete.

Fixed Overhead Costs

Regular, unchanged costs incurred by a business, regardless of its level of production or activity, such as rent and salaries.

Control Perspective

An approach focusing on the monitoring and adjusting of processes and strategies to achieve desired outcomes or objectives.