In Computing the Earnings Per Share of Common Stock,noncumulative Preferred

question 69

Multiple Choice

In computing the earnings per share of common stock,noncumulative preferred dividends not declared should be

• A) deducted from the net income for the year,net of tax.
• B) added to the net income for the year.
• C) deducted from the net income for the year.
• D) ignored.

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Definitions:

High Tariffs

Taxes imposed on imported goods to protect domestic industries from foreign competition by making imported goods more expensive.

Second Industrial Revolution

A period of rapid industrial growth and technological advancement during the late 19th and early 20th centuries, often associated with new innovations in steel production, electricity, and transportation.

Mining

The extraction of valuable minerals or other geological materials from the earth.

Railroad Industries

A sector centered around the development, maintenance, and operation of railways, which played a critical role in economic growth and the expansion of trade and transport in the 19th and early 20th centuries.