When Computing Diluted Earnings Per Share,stock Options Are

question 13

Multiple Choice

When computing diluted earnings per share,stock options are

• A) recognized only if they are dilutive.
• B) recognized only if they are antidilutive.
• C) recognized only if they were exercised.
• D) ignored.

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Definitions:

Debits

Accounting entries that can increase asset or expense accounts or decrease revenue, liability, or equity accounts.

Credits

In accounting, credits refer to a bookkeeping entry that increases a credit account or decreases a debit account on a company's balance sheet.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership of the company’s shareholders.

Balance Sheet

An accounting document that outlines an organization's resources, debts, and ownership interests on a certain date.