What Variables Are Needed to Calculate Basic Earnings Per Share

question 14

Multiple Choice

What variables are needed to calculate basic earnings per share?

• A)Adjusted earnings after taxes, number of shares outstanding, and number of common shares from all potential securities convertible into common stock
• B)Earnings after taxes and number of shares outstanding
• C)Adjusted earnings after taxes, shares outstanding, common stock equivalents, and all convertibles
• D)Earnings after taxes, common shares outstanding, and all convertible preferred stock

---

Definitions:

Servo Action

A mechanism that uses feedback to control a device, commonly found in systems requiring precise control of position or speed.

Anchor

A device used to connect a vessel to the bed of a body of water to prevent the craft from drifting due to wind or current.

Leading-Trailing Brake Designs

A drum brake configuration where one brake shoe is positioned to lead and press against the drum due to rotational forces, and the other trails and provides lesser braking force.

Anchor

A device used to connect a vehicle to the ground to prevent it from moving, or a metaphor for something that provides stability.