Which of the Following Statements Is INCORRECT

question 30

Multiple Choice

Which of the following statements is INCORRECT?

• A) Options that are out of the money are ignored in earnings per share calculations.
• B) The treasury stock method is used for written call options.
• C) Corporations that have only antidilutive securities are not permitted to increase their earnings per share and are required to report only basic earnings per share.
• D) Contingently issuable shares are never included in diluted earnings per share calculations.

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Definitions:

Corporate Governance

A system of rules, practices, and processes by which a company is directed and controlled, focusing on the interests of stakeholders.

Shift

Represents a change or movement in position, direction, or focus, often used in the context of work schedules, economic trends, or paradigm changes in various fields.

Legislative Changes

Amendments or modifications made to existing laws or the enactment of new laws by a governing body.

Legal Decisions

Outcomes of judicial procedures that establish precedents or resolve disputes.