Listed Below Are Five Terms Followed by a List of Phrases

question 80

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Diluted EPS

• A)Assumption used for options, rights, and warrants.
• B)Dual presentation of EPS does not apply.
• C)Applies to both convertible debt and convertible equity securities.
• D)Approximation of EPS assuming potential common shares became common stock.
• E)Add after-tax interest to EPS numerator.

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Definitions:

Recording Method

A system or standard procedure for capturing financial transactions and events in an organization's accounting records.

Unrecorded Liability

A liability that has not been accounted for or documented in the financial statements.

Revaluation

The process of adjusting the book value of a fixed asset or security to reflect its current market value.