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:

Precondition

A condition that must be true or satisfied before the execution of a procedure or operation to ensure its correctness and safety.

Postcondition

An assertion that specifies the state of computation after the execution of a function or a block of code.

Call-By-Value

A method of parameter passing in programming where a copy of the actual parameter's value is made and passed to the function, protecting the original value from modification.

Primitive Types

Basic data types built into the language that include int, char, float, and boolean, among others.