Which Statement Is Correct About the "If-Converted" Method for EPS

question 35

Multiple Choice

Which statement is correct about the "if-converted" method for EPS?

• A)This method assumes the interest is paid on the convertible security until it was converted into ordinary shares.
• B)This method assumes the interest is paid on the convertible security for one-half of the year.
• C)This method assumes the interest is paid on the convertible security for the period after its issue date.
• D)This method assumes the no interest is paid on the convertible security for the entire year.

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