1. In calculating basic earnings per share, if the preferred shares are cumulative, the amount that should be deducted as an adjustment to the numerator is the a) annual preferred dividend. b) preferred dividends for 10 years c) annual preferred dividend times one minus the income tax rate. d) preferred dividends in arrears times one minus the income tax rate. 2. In calculating the weighted average of common shares outstanding, when a stock dividend or stock split occurs, the shares held prior to these transaction types are: a) ignored. b) Multiplied by a present value factor. c) adjusted via the split factor d) Not adjusted but still included. 3. In calculating diluted earnings per share, dividends on non-convertible cumulative preferred shares should be: a) ignored. b) deducted from net income whether declared or not. c) deducted from net income only if declared. d) added back to net income whether declared or not. 4. (Select one of the four items) Which is one of the two a pension plan types we account for? a) future earnings plan. b) defined pension plan. c) defined contribution plan. d) health and benefits plan. 5. In a defined contribution plan, who holds risk? a) employees b) employers c) third party administrator d) persons on the edge of retirement