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Gennadij [26K]
3 years ago
12

In calculating earnings per share, companies deduct preferred dividends from net income if:

Business
1 answer:
Savatey [412]3 years ago
7 0

Answer: Option B

Explanation: Earnings per share is calculated by dividing net income available to common shareholders with the weighted average number of shares.

Deduction of preferred dividends from net income is done only when dividends are declared by the entity, otherwise not. Preference shareholders have priority over common shareholders in case of dividends, so it will result in reduction of earnings to common shareholders but only when the dividends are declared and distributed.

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Brush Industries reports the following information for May: Sales $ 980,000 Fixed cost of goods sold 116,000 Variable cost of go
Roman55 [17]

Answer:

Net operating income= 341,000

Explanation:

We need to use the following structure:

Gross profit= sales - cost of goods sold

Net operating income= Gross profit - other expenses (variable and fixed)

<u>Under the absorption costing method, the cost of goods sold incorporates the fixed overhead.</u>

Sales= 980,000

COGS= (116,000 + 266,000)= (382,000)

Gross profit= 598,000

Fixed selling and administrative costs= (116,000)

Variable selling and administrative costs= (141,000)

Net operating income= 341,000

8 0
3 years ago
What do we call the board members who are part of a company's senior management team appointed by shareholders to provide the bo
wlad13 [49]

Answer: Option C

   

Explanation: In simple words, inside directors refers to the individuals who holds significant position or stake in the company along with the position in the broad of directors committee.

These individuals are appointed by the shareholders and are obligated to represent truther point of view and act in their best interest. They are of high power in the company as they have significant potion in the management as well along wight the privileges of the board of director.

Hence the correct option is C.    

 

7 0
3 years ago
Suppose Bev's Bags makes two kinds of handbags--large and small. Bev rents an industrial space where she keeps the fabric, the i
konstantin123 [22]

Answer: Zero

Explanation: As per the subject matter of cost accounting and economics. Variable cost can be defined as the cost which changes its level with the level of output produced unlike fixed cost which remain constant at all levels.

Electricity bill, raw materials and packaging are some common examples of variable cost.

So from the above explanation we can conclude that if Bev produce no bags there variable cost would be zero.

7 0
3 years ago
Which of the following statements is true of process​ costing? A. It tracks and assigns both period costs and product costs to u
Dahasolnce [82]

Answer:

B) It accumulates product costs by production departments.

Explanation:

Process cost is used to ascertain the cost of a product at all stages of production. Total cost is an addition of all the individual process costs. Usually this is used in companies that produce homogeneous goods.

For example manufacturers for processed foods, and chemicals.

7 0
3 years ago
April 30 May 31
Sonbull [250]

Solution:

The record entry in accounting is the reporting of a report in an accounting document that displays the company's costs and credit balances. The amount of the payments must be equivalent to the sum of the credits otherwise the journal submission must be treated as unbalanced.

Raw material: a fundamental substance in its natural, changed or semi-managed condition, used as a contribution to the cycle of production for the eventual modification or transformation into a finished decent substance.

                                    Pass journal entry

Particular                                                Debit ($)           Credit ($)

Raw material inventory  (WN1)              210,000

                       Cash                                                         210,000

Work in process                                     186,000

           Raw material inventory                                        186,000

Factory overhead                                  15,000

           Raw material inventory                                       15,000

4 0
3 years ago
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