Definition of Basic EPS Profit attributable to ordinary shareholders ► Profit after tax - Preference shares dividend Note on amount of preference dividend Type of preference dividend Non-cumulative Amount to be deducted Declared during the reporting period Cumulative Required for the reporting period Declared: Dividend included in P&L after announcing to the public Required: Dividend included in P&L no matter announced or not

Definition of Basic EPS Profit attributable to ordinary shareholders ► Profit after tax - Preference shares dividend Note on amount of preference dividend Type of preference dividend Non-cumulative Amount to be deducted Declared during the reporting period Cumulative Required for the reporting period Declared: Dividend included in P&L after announcing to the public Required: Dividend included in P&L no matter announced or not

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 38CE: Stockholder Payout Ratios The following information pertains to Milo Mindbender Corporation:...

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Dividends in arrears on preference shares are reported in the financial statements as a (an) a. liabilityb. reduction from Retained Earningsc. reduction from Retained Earningsd. expense
The cost of dividend payable on redeemable preference shares should be included in______. Select one: a. in the statement of income after identifying profit after tax b. in the statement of income before identifying the profit before tax c. as a deduction in the statement of changes in equity d. in the statement of income as a deduction prior to identifying profit from operations
In computing basic earnings per share (EPS), the amount of preference dividends on noncumulative preference shares should be:A. deducted from net income whether declared or notB. deducted from net income only when declaredC. added to net income only when declaredD. ignored
In computing basic EPS, the amount of preference dividends onnoncumulative preference shares should be A. deducted from net income whether declared or notB. deducted from net income only when declaredC. added to net income only when declaredD. ignored
Dividends declared on redeemable preference shares are recognized O By a debit to retained earnings O By a credit to retained earnings O In a profit or loss In other comprehensive income
#31 Complete the statement: Preference share that has a claim on any prior year dividends that may have passed is ______. Group of answer choices Non-cumulative Participating Cumulative Non-participating
When computing the basic earnings per share in a structure where there are cumulative preference shares, the net income to ordinary shares is equal to the actual net income of the company a. Add current dividend for preference shares whether declared or not b. Less current dividend for preference shares whether declared or not c. Less current dividend for preference shares only when declared d. Less current and previous dividend for preference shares declared or not e. Add current dividend for preference shares only when declared
Cash dividends declared but not paid as of the statement of financial position date are reported as a. current liabilityb. deduction from Cashc. addition to Share Capitald. addition to Additional Paid-in Capital
The ____________________per share is the amount of income attributable to each share ofcommon stock.a. earningsb. market valuec. book valued. preferred value
Preference share that is given a right to share with the ordinary share in dividends in excess of a stated dividend rate is said to be * a. cumulative b. participating c. non cumulative d. non participating
Cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as: O A footnote O An increase in current liabilities O An increase in current liabilities for the current portion and long-term liabilities for the long-term portion O An increase in stockholders' equity
Stockholder Payout Ratios The following information pertains to Milo Mindbender Corporation: Required: Calculate the dividend yield, dividend payout, and total payout. (Note: Round answers to two decimal places.)