Which of the Following Is Not True Regarding Diluted Earnings

question 16

Multiple Choice

Which of the following is not true regarding diluted earnings per share (DEPS) when the subsidiary has outstanding dilutive securities which may require the issuance of subsidiary company shares only?

• A)​The calculation of consolidated DEPS becomes a two-stage process where the DEPS of the subsidiary must first be calculated.
• B)​The controlling interest's share of net income is divided by the number of outstanding parent shares.
• C)​Both the income of the parent and subsidiary would be the income as shown in their respective income distribution schedules, except for the inclusion of the parent's share of subsidiary income.
• D)​The DEPS of the subsidiary is a component of the calculation of consolidated DEPS.

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Definitions:

Interrelated Roles

Positions or functions within a group or organization that are connected and dependent on each other to achieve collective objectives.

External Coordination

The process of managing and harmonizing activities or relationships between an organization and external entities or stakeholders.

Network of Contacts

A web of personal and professional relationships that individuals can draw upon for information, resources, or support.

Leadership Behaviors

The array of actions and practices carried out by leaders to influence the direction, performance, and the morale of their team or organization.