The Calculation of Diluted Earnings Per Share Assumes That Stock

question 167

Multiple Choice

The calculation of diluted earnings per share assumes that stock options were exercised and that the proceeds were used to:

• A) Buy common stock as an investment.
• B) Retire preferred stock.
• C) Buy treasury stock.
• D) Increase net income.

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Definitions:

Gardner

Refers to Howard Gardner, an American developmental psychologist best known for his theory of multiple intelligences.

Innate

Possessed from birth; inborn or inherent qualities or abilities.

"G" Factor

The "G" factor, or general intelligence, refers to the concept of a single, overarching measure of intelligence that is thought to underlie specific cognitive abilities.

Cognitive Development

The process of growth and change in intellectual capabilities, understanding, reasoning, and problem-solving abilities throughout the life span.