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:

Green Grocer

A retailer specializing in the sale of fresh produce, including fruits and vegetables.

Failure of Consideration

A situation where the promised performance in a contract is not fulfilled, making the contract voidable.

Breach of Contract

The failure to fulfill the terms or obligations outlined in a contract.

Fraud in the Inducement

A deceitful practice to mislead someone into entering a contract, undermining the agreement's legitimacy.