What Variables Are Needed to Calculate Basic Earnings Per Share

question 14

Multiple Choice

What variables are needed to calculate basic earnings per share?

• A)Adjusted earnings after taxes, number of shares outstanding, and number of common shares from all potential securities convertible into common stock
• B)Earnings after taxes and number of shares outstanding
• C)Adjusted earnings after taxes, shares outstanding, common stock equivalents, and all convertibles
• D)Earnings after taxes, common shares outstanding, and all convertible preferred stock

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Definitions:

Pseudocoelom

A body cavity between the mesoderm and endoderm; derived from the blastocoel. Compare with coelom.

Echinoderms

Phylum of spiny-skinned marine deuterostome invertebrates characterized by a water vascular system and tube feet; include sea stars, sea urchins, and sea cucumbers.

Segmentation

A body plan in which the body is divided into a series of compartments (segments).

Deuterostomia

Deuterostomia is a major division of the animal kingdom that includes groups like the chordates and echinoderms, characterized by the developmental feature in which the anus forms from the first opening in the embryo, with the mouth forming later.