In Computing Diluted Earnings Per Share, Share Options Are Considered

question 41

True/False

In computing diluted earnings per share, share options are considered dilutive when their option price is greater than the market price.

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Definitions:

Direct Method

A cash flow statement approach that lists major classes of gross cash receipts and payments.

Revenues and Gains

Income generated from normal business operations and other positive financial events.

Cash Flows

The complete sum of funds flowing into and leaving a business, significantly impacting its liquidity.

Net Income

is the total earnings of a company after all expenses and taxes have been subtracted from total revenue; a key indicator of financial health.