In Calculating the Weighted-Average Number of Ordinary Shares for Use

question 34

True/False

In calculating the weighted-average number of ordinary shares for use in earnings per share,it is necessary to adjust the number of shares for the ordinary share equivalents represented by the partly paid ordinary shares' rights to participate in voting at the annual general meeting.

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Definitions:

Money Market Securities

Short-term financial instruments that are considered relatively safe and liquid, including treasury bills, certificates of deposit, and commercial paper.

Highly Marketable

Describes assets or products that are easily sold or traded in the market due to high demand or liquidity.

Very Low Risk

Investments or financial strategies characterized by minimal potential for financial loss, typically associated with low returns.

Debt Security

Debt security is a financial instrument representing a loan made by an investor to a borrower, typically corporate or governmental, where the borrower promises to return the principal and pay periodic interest payments.