Which Statement Is Correct

question 8

Multiple Choice

Which statement is correct?

• A)When convertible securities are redeemed during the year,the income effect and share effect are not pro-rated for the diluted EPS calculation.
• B)When convertible securities are issued during the year,the income effect and share effect are pro-rated for the diluted EPS calculation.
• C)When convertible securities are issued at the beginning of the year,the income effect and share effect are pro-rated for the diluted EPS calculation.
• D)When the right to convert convertible securities expires during the year,the income effect and share effect are not pro-rated for the diluted EPS calculation.

---

Definitions:

FSH

Follicle-Stimulating Hormone, a hormone involved in the reproductive processes of both males and females, including the maturation of ovarian follicles and sperm production.

Pituitary

A small gland at the base of the brain responsible for regulating vital body functions and general wellbeing through hormone secretion.

Insulin

A hormone produced by the pancreas that regulates the amount of glucose in the blood.

Pancreas

An organ in the abdominal cavity involved in digestion and blood sugar regulation, producing digestive enzymes and insulin.