When a Company Does Not Have Any Convertible Securities or Options

question 4

Multiple Choice

When a company does not have any convertible securities or options or warrants outstanding,the company has

• A)a complex capital structure.
• B)a simple capital structure.
• C)to report only diluted earnings per share.
• D)to report both basic and diluted EPS.

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Definitions:

Adjusted Trial Balance

A statement listing all accounts and their balances after adjustments, used to verify the equality of debits and credits before preparing financial statements.

Unadjusted Trial Balance

A preliminary list of all accounts and their balances used in accounting, before any adjustments are made for the closing entries.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency.

Current Liabilities

Short-term financial obligations that are due to be paid within one year or within the business's operating cycle.