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Other Fields Homework Help Accounting Topic started by: melisooflyy on Feb 5, 2023



Title: Which of the following is the reason that preferred dividends declared during the period are ...
Post by: melisooflyy on Feb 5, 2023
Which of the following is the reason that preferred dividends declared during the period are deducted from net income in calculating return on common stockholders' equity?

▸ Preferred dividends are not a part of stockholders' equity.

▸ Preferred dividends are not paid from net income.

▸ Preferred dividends are not paid until all common stockholders have received their dividends, so preferred dividends are not relevant in the formula and so must be taken out of the equation.

▸ Preferred dividends reduce the amount of income available for distribution to common stockholders.


Title: Which of the following is the reason that preferred dividends declared during the period are ...
Post by: latoya86 on Feb 5, 2023
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