Which Statement Is Correct About the "If-Converted" Method for EPS

question 60

Multiple Choice

Which statement is correct about the "if-converted" method for EPS?

• A)This method assumes the convertible security is converted into ordinary shares at the end of the fiscal period.
• B)This method assumes the convertible security is converted into ordinary shares at the beginning of the fiscal period.
• C)This method assumes the convertible security is converted into ordinary shares evenly over the fiscal period.
• D)This method assumes the convertible security is converted into ordinary shares at the mid-point of the fiscal period.