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.

---

Definitions:

Aroused

A state of being awake and responsive to stimuli, or sexually excited.

Strangle

A physical action where one's breathing is severely impeded by external compression of the throat.

Sexual Dysfunction

A problem occurring during any phase of the sexual response cycle that prevents the individual or couple from experiencing satisfaction from the sexual activity.

Sexual Response Cycle

A series of emotional and physical phases that individuals experience during sexual activity, including arousal, plateau, orgasm, and resolution.