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When Calculating Earnings Per Share, Dividends Declared on Noncumulative Preferred

Question 19

Multiple Choice

When calculating earnings per share, dividends declared on noncumulative preferred stock, but not paid, should be


A) added to net income in the earnings per share numerator
B) excluded from the earnings per share numerator
C) deducted from net income in the earnings per share numerator
D) deferred from the earnings per share numerator until paid

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