When Preparing Financial Statements the Accounting Consideration of Convertible Bonds

question 30

Multiple Choice

When preparing financial statements the accounting consideration of convertible bonds include:

• A) adding shares from conversion to shares outstanding in the numerator of the diluted earnings per shares calculation.
• B) the effect of convertibles on basic earnings per share.
• C) adjusting after tax earnings in the denominator of the diluted earnings per shares calculation.
• D) redefining earnings to add the costs related to the convertible securities to the numerator of the EPS ratio.

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