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What is the earnings per shares for chain inc

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Reference no: EM132906623

Problem 1: Chain inc. loss a profit of $1,000,000 for 2017, and there are 400,000 common shares issued. Dividends declared and paid during the year amounted to 200,000 on the preferred shares and 300,000 on the common shares. The earnings per shares for 2017 is?

a. $2.50

b. $0.75

c. $2.00

d. $1.25

Problem 2: Accounting information is considered to be relevant when it:

a. Can be depended on to represent the economic conditions and events that it is intended to represent.

b. Is capable of making a difference to a decision maker.

c. Is understandable by reasonably informed users of accounting information.

d. Is verifiable and neutral

Reference no: EM132906623

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