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melisooflyy melisooflyy
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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.
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Managerial Accounting

Managerial Accounting


Edition: 4th
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latoya86latoya86
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melisooflyy Author
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2 years ago
Thank you, thank you, thank you!
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Helped a lot
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This calls for a celebration Person Raising Both Hands in Celebration
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