Which of the Following Statements Is Correct

question 60

Multiple Choice

Which of the following statements is correct?

• A) Options that are in the money are ignored in earnings per share calculations.
• B) Options that are out of the money are ignored in earnings per share calculations.
• C) Contingently issuable shares are never included in diluted earnings per share calculations.
• D) The treasury stock method is used for written put options.

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Definitions:

Observational Learning

Observational learning refers to the process of acquiring behaviors, skills, or attitudes by watching and imitating others.

Mental Picture

An image or representation formed in the mind of something not currently being sensed.

Future Time

The concept or perception of time that lies ahead, including plans, expectations, and the anticipation of events that have not yet occurred.

Modeled Behavior

Actions or responses learned through observing and replicating the behavior of others.