When computing basic EPS,the numerator includes net income minus the ________.

Question

Quizplus · Accepted Answer

The numerator in basic EPS calculation is the net income available to common shareholders. This net income needs to be adjusted for preferred dividends for cumulative preferred stock, which is the amount of dividends paid on cumulative preferred stock that cannot be paid in the current period and must be accrued for future payment. The other options (A, C, and D) do not affect the computation of basic EPS.

When Computing Basic EPS,the Numerator Includes Net Income Minus the ________