In Computing Diluted Earnings Per Share, the Treasury Stock Method

question 148

Multiple Choice

In computing diluted earnings per share, the treasury stock method is used for:

• A) Stock warrants.
• B) Stock splits.
• C) Reverse stock splits.
• D) Convertible preferred stock.

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Definitions:

Formalization

The degree to which rules and procedures are standardized in an organization.

Rules And Procedures

Guidelines and systematic steps established for consistent and orderly conduct or action.

Standardized

The process or practice of making elements uniform or consistent by following a defined set of criteria or standards.

Organic Model

A less formalized structure based on decentralization and cross-functional teams.