Which of the following items would not be included in a basic earnings per share calculation?

Question

Quizplus · Accepted Answer

Undeclared dividends on noncumulative preferred stock are not included in the calculation of basic earnings per share because they represent potential distributions that have not been formally declared by the company's board of directors. Basic EPS calculations only consider dividends on preferred stock that have been declared or are obligatory (as in the case of cumulative preferred stock, where dividends accumulate if not paid).

Which of the Following Items Would Not Be Included in a Basic