Diluted Earnings Per Share Is a Hypothetical Computation to Warn

question 100

Multiple Choice

Diluted earnings per share is a hypothetical computation to warn stockholders what could happen if:

• A)Loss contingencies turn out adversely.
• B)Convertible securities are converted into shares of common stock.
• C)Non-recurring losses were to recur.
• D)Consideration was given to the loss from operations discontinued during the current period.

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Definitions:

Correlation Coefficient

A number that represents the strength and direction of a relationship existing between two variables; number derived from the formula for measuring a correlation.

Psychological Test

A standardized measure designed to assess an individual’s mental and/or behavioral characteristics.

Valid

The quality of being logically or factually sound; applicable more commonly in contexts of arguments or test results.

Standardized

Refers to the process of making something conform to a standard, often used in the context of tests and measures that have uniform procedures and scoring.