US GAAP Assumes That All Potential Dilutive Shares in Diluted

question 57

True/False

U.S. GAAP assumes that all potential dilutive shares in diluted earnings per share computations use the treasury stock method.

---

Definitions:

Bolus

A small rounded mass of a substance, especially of chewed food at the moment of swallowing.

Esophagus

The part of the digestive tract that conducts food from the pharynx to the stomach.

Amylase

An enzyme that catalyzes the hydrolysis of starch into sugars, present in saliva and pancreatic fluid.

Starch

A carbohydrate consisting of a large number of glucose units joined by glycosidic bonds, primarily found in plants and used as an energy store.