In calculating earnings per share,the numerator is:
A)income from continuing operations
B)net income plus common dividends
C)net income minus preferred dividends
D)income before taxes plus preferred dividends

Question

Quizplus · Accepted Answer

The numerator for calculating earnings per share is typically the net income available to common shareholders, which is calculated by subtracting any preferred dividends from net income. Therefore, option C ("net income minus preferred dividends") is the correct answer. Options A and D are incorrect because they do not take into account preferred dividends, and option B is incorrect because it adds common dividends to net income, which is not part of the calculation for earnings per share.

In Calculating Earnings Per Share,the Numerator Is