When Computing Diluted Earnings Per Share, Which of the Following

question 25

Multiple Choice

When computing diluted earnings per share, which of the following will not be considered in the calculation?

• A) Dividends paid on common stock.
• B) The weighted average common shares.
• C) The effect of stock splits.
• D) The number of common shares represented by stock purchase warrants.

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted or expected amount, used in budgeting and financial planning.

Cleaning Equipment

Hardware and machinery used specifically for the purpose of cleaning and maintaining cleanliness in various settings.

Flexible Budget

A budget that is conceived to flex with variations in activity scale or volume.

Selling

The process involved in promoting and transferring ownership of a product or service to a customer in exchange for payment.