Which of the Following Are Included in Calculating Weighted Average $\quad$

question 10

Multiple Choice

Which of the following are included in calculating weighted average number of shares used for basic earnings per share:
I $\quad$ an adjustment for the date on which new shares were issued
II $\quad$ the date on which shares acquired under a share buyback were acquired by the company
III $\quad$ the amount paid up on shares
IV $\quad$ the number of shares on issue at the beginning of the reporting period

• A)I and II only
• B)each of I, II, III and IV
• C)I, II and IV only
• D)III and IV only

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Definitions:

Deferred Payment Contract

A contractual agreement where payment is postponed to a future date beyond the standard billing period.

Prime Interest Rate

The interest rate that commercial banks charge their most credit-worthy customers, often used as a benchmark in lending rates.

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the money market that borrowers must pay to obtain funds.

Recognized Gain

The profit realized from the sale of an asset, calculated by subtracting the asset's cost from its selling price and officially recorded in financial statements.