Under Which of the Following Situations Would the Potential Ordinary

question 32

Multiple Choice

Under which of the following situations would the potential ordinary shares be included in the calculation of diluted earnings per share?

• A) Conversion of the potential ordinary shares would increase the loss from continuing ordinary operations per share.
• B) Conversion of the potential ordinary shares would increase earnings per share.
• C) Earnings per incremental share are greater than basic earnings per share.
• D) out-of-the money options

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Definitions:

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Aspirin

A medication used to reduce pain, fever, or inflammation, known chemically as acetylsalicylic acid.

Emergency Room

A specialized department in a hospital that provides immediate treatment for acute illnesses and trauma.

House Calls

House calls refer to visits made by professionals, such as healthcare providers, to the home of a client or patient to deliver services.