In computing the basic earnings per share, the full amount of the required preference dividends on cumulative preference shares for the period should be: O Added to net income whether declared or not O Deducted from net income whether declared or not O Ignored O Deducted from net income only when declared

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 82E
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In computing the basic earnings per share, the full amount of the required
preference dividends on cumulative preference shares for the period should be:
O Added to net income whether declared or not
O Deducted from net income whether declared or not
O Ignored
Deducted from net income only when declared
Transcribed Image Text:In computing the basic earnings per share, the full amount of the required preference dividends on cumulative preference shares for the period should be: O Added to net income whether declared or not O Deducted from net income whether declared or not O Ignored Deducted from net income only when declared
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