Diluted Earnings Per Share Includes Stock Transactions That Might Occur

question 67

Multiple Choice

Diluted earnings per share includes stock transactions that might occur in the future such as

• A) Sale of additional shares of stock
• B) Exercise of stock options
• C) Declaration of dividends
• D) All of these are correct

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Definitions:

Self-efficacy

An individual’s belief in their own ability to successfully accomplish tasks and reach goals.

Spotlight Effect

The idea that one's actions and appearance draw more observation from others than truly happens.

Self-serving Bias

A common cognitive bias that leads individuals to attribute success to personal factors while attributing failures to external factors, protecting self-esteem.

Disparage

To belittle or depreciate someone or something; often reflecting a perceived difference in value or status.