When Computing Diluted Earnings Per Share, Convertible Securities Are

question 118

Multiple Choice

When computing diluted earnings per share, convertible securities are

• A) ignored.
• B) recognized only if they are dilutive.
• C) recognized only if they are antidilutive.
• D) recognized whether they are dilutive or antidilutive.

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Definitions:

Straight-Line Depreciation

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life, reflecting wear and tear, obsolescence, or aging.

Inventory

The raw materials, work-in-progress products, and finished goods considered to be the portion of a business's assets that are ready or will be ready for sale.

Revenue

The sum of money received from selling goods or providing services that are fundamental to a company's main business activities.