To Calculate Diluted EPS,the Accountant Does All of the Following

question 9

Multiple Choice

To calculate diluted EPS,the accountant does all of the following except:

• A) adds back to net income any compensation expense recognized on the employee stock options
• B) adds back any interest expense (net of taxes) on convertible bonds
• C) adds back any dividends on convertible preferred stock the firm subtracted in computing net income to common shareholders.
• D) enters only the net incremental shares issued (shares issued under options minus assumed shares repurchased) in the computation of diluted EPS.

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Definitions:

Conditioning

A learning process by which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.

Agoraphobia

An anxiety disorder characterized by an intense fear of places or situations where escape might be difficult or help unavailable, often leading to avoidance of public places.

Stimulus Generalization

The process by which a conditioned response is triggered not only by the conditioned stimulus but also by stimuli that are similar to the conditioned stimulus.

Psychoanalytic

Psychoanalytic relates to a theory and method of therapy that emphasizes unconscious mental processes and childhood experiences in shaping behavior and personality.