When Computing Diluted Earnings Per Share,convertible Securities Are

question 123

Multiple Choice

When computing diluted earnings per share,convertible securities are:

• A) Incorporated into diluted EPS only if they are dilutive.
• B) Incorporated into diluted EPS only if they are anti-dilutive.
• C) Ignored for EPS purposes.
• D) Incorporated into diluted EPS whether they are dilutive or anti-dilutive.

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Definitions:

Variables

Characteristics or conditions that can change and potentially affect the outcome of a study or experiment.

Interrelationships

The way in which two or more concepts, objects, or people are connected and affect each other.

Discriminant Validity

The degree to which a measure does not associate too strongly with measures from which it is supposed to differ.

Correlation Coefficient

A statistical measure that quantifies the degree to which two variables vary together; it ranges from -1 to 1, indicating the strength and direction of the relationship.