Answer:
b. deducted from net income whether declared or not
Explanation:
The formula to compute the basic earning per share is shown below:
Basic earning per share = (Net income - preferred stock dividend) ÷ (weighted average of outstanding shares)
In the case of the non- convertible cumulative preferred stock, the dividend should be paid whether the business earns profit or loss. If the business does not earn any profit during a particular year, in that period the dividend amount is carried forward to next year.
So, the dividend arrears are to be paid to the cumulative preferred stock.
Answer:
The correct answer is letter "B": Expected return.
Explanation:
Expected return is the return an investor expects from an investment given the investment's historical return or probable rates of return under different scenarios. To determine expected returns based on historical data, an investor simply calculates an average of the investment's historical return percentages and then, uses that average as the expected return for the next investment period.
In the example, the expected return would be:
<em>Expected return </em><em>= (return in a good economy + return in a poor economy)/2</em>
<em>Expected return </em><em>= (13% + 4%)/2</em>
<em>Expected return </em><em>= </em><em>8,5%</em>
hewwooooooooooooooooooooooo
That at least two accounts are affected.
That the total debits will equal the total credits.
Answer: Options C and D.
<u>Explanation:</u>
In a double entry system, there are two accounts which are to be dealt with at the same time. Those two accounts or the two sides of the accounting are the debit side and the credit side. The debit side is on the right side of the table and the credit side is on the left side of the accounting table.
One entry made in the accounting table will affect both the sides of the table which means that one entry will affect debit side also and the credit side also of the table.
