Under Current GAAP, a Company with a Complex Capital Structure

question 28

Multiple Choice

Under current GAAP, a company with a complex capital structure and potential earnings per share dilution must present

• A) primary and fully diluted earnings per share.
• B) basic and diluted earnings per share.
• C) basic and primary earnings per share.
• D) basic earnings per share and cash flow per share.

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Definitions:

Function

A relation or correspondence between two sets in which each element of the first set is paired with exactly one element of the second set, typically described by f(x).

Function

A relation between a set of inputs and allowable outputs, where each input is related to exactly one output.

Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Compounded Continuously

Pertains to the situation where interest is added to the principal balance of an investment, loan, etc., at an infinite number of times within a specified time period.