If All of the Dilutive Securities Were Converted into Ordinary

question 48

Multiple Choice

If all of the dilutive securities were converted into ordinary shares, the diluted earnings per share ratio:

• A) may include an adjustment to increase the weighted average number of ordinary shares that would be outstanding
• B) must include an adjustment to decrease the weighted average number of ordinary shares that would be outstanding
• C) must include an adjustment to increase the number of ordinary shares that would be outstanding
• D) must include an adjustment to increase the weighted average number of ordinary shares that would be outstanding

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Definitions:

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others and to understand that others have beliefs, desires, and intentions that are different from one's own.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a concept developed in early infancy.

Insecure Attachment

A problematic bond between a child and caregiver characterized by fear, anxiety, or uncertainty.

Conservation

The principle in cognitive development where a child understands that quantity remains the same despite changes in its shape or form.