After Emma Honked Repeatedly While Tailgating the Slower Driver in Front

question 32

Multiple Choice

After Emma honked repeatedly while tailgating the slower driver in front of her, he reluctantly pulled over. This communication may have been ____________, but it was not ____________.

• A) linear; transactional
• B) transactional; linear
• C) effective; appropriate
• D) appropriate; effective

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Definitions:

GAAP

Stands for Generally Accepted Accounting Principles, which are a collection of commonly-followed accounting rules and standards for financial reporting in the United States.

If Converted Method

An accounting method used to calculate diluted earnings per share, assuming all convertible securities were converted to common stock.

Treasury Stock Method

A method used to compute the number of new shares that could potentially be created by unexercised in-the-money warrants and options, used in the calculation of diluted earnings per share.

Diluted Earnings Per Share

A performance metric that shows the quality of earnings per share if all convertible securities were converted into shares.