When Computing Diluted Earnings Per Share, a Company May Use

question 50

Essay

When computing diluted earnings per share, a company may use the if converted method or the treasury stock method.
Required:
Describe when and why a company would use each method.

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Definitions:

National Achievement Test

It is an examination given annually in many countries designed to test the academic achievement of students in a variety of subjects.

Standard Deviation

A statistical metric that quantifies the variability or spread in a dataset or distribution.

Income Tax Returns

Documents filed with the government that report income, expenditures, and taxes owed for a specific year, used by individuals and entities.

Standard Deviation

A strategy to evaluate the amount of deviation or spread among a collection of numbers.