When Computing Diluted Earnings Per Share, Convertible Securities Are

question 101

Multiple Choice

When computing diluted earnings per share, convertible securities are:

• A)Incorporated into diluted EPS whether they are dilutive or anti-dilutive.
• B)Incorporated into diluted EPS only if they are anti-dilutive.
• C)Incorporated into diluted EPS only if they are dilutive.
• D)Ignored for EPS purposes.

---

Definitions:

Experimental Group

In a scientific study, the group of subjects who receive the treatment or condition being tested, as opposed to the control group.

Experimenter Bias

A process where the scientists performing the research influence the results, in order to portray a certain outcome.

Case Study

An in-depth investigation of an individual, group, event, or situation to explore causation in order to find underlying principles.

Naturalistic Observation

A technique of research that involves watching subjects in their natural habitats without any alterations made by the researcher.