Reference no: EM132730848

Problem 1: When the right to receive dividend is forfeited in any one year in which dividend is not declared, the preference share is said to be

Group of answer choices

Option 1: Cumulative

Option 2: Nonparticipating

Option 3: Noncumulative

Option 4: Participating

Problem 2: In computing diluted earnings per share, dividends on convertible preference shares should be

Group of answer choices

Option 1: deducted from net income, whether declared or not.

Option 2: added to net income net of tax.

Option 3: ignored.

Option 4: deducted from net income only when declared.