Lauren Received a $1,500 Scholarship to Attend the Local Community

question 23

True/False

Lauren received a $1,500 scholarship to attend the local community college.She decides not to attend college that year,so she can assign her right to the scholarship to her friend,Sean.

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Definitions:

Net Income

A company's total profit calculated by subtracting total expenses from total revenues.

Contingently Issuable Common Stock

Shares that may be issued in the future based on the occurrence of certain events.

Diluted Earnings Per Share

A measure of a company's profit divided by the number of shares outstanding, including all possible sources of conversion.

Treasury Stock Method

A method used to compute the diluted shares outstanding by assuming all in-the-money options and warrants are exercised and the proceeds from exercise are used to buy back shares at the average market price.