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:

Nonverbal Communication

The transfer of information through the use of body language, facial expressions, gestures, and tone of voice instead of words.

Functionalist Perspective

A theoretical framework in sociology that focuses on the function of each component of society and how those components fit together.

Social Institutions

Complex social forms that reproduce themselves such as governments, the family, human languages, universities, hospitals, business corporations, and legal systems.

Casual Conversation

Informal exchange of information and ideas between individuals without specific purpose or structure.