Dilutive Convertible Securities Must Be Used in the Computation of

question 61

Multiple Choice

Dilutive convertible securities must be used in the computation of

• A) basic earnings per share only.
• B) diluted earnings per share only.
• C) diluted and basic earnings per share.
• D) none of these.

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Definitions:

Statute of Frauds

The Statute of Frauds is a legal principle requiring certain types of contracts to be in writing and signed to be enforceable.

Partial-Performance Exception

A legal doctrine allowing enforcement of an oral contract, contrary to the Statute of Frauds, based on partial completion of agreed terms.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be enforceable.

Merger Clause

A contract provision that states the written contract represents the complete and final agreement between the parties, superseding all prior negotiations.