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.

---

Definitions:

Hazardous Wastes

Hazardous wastes are substances that pose substantial or potential threats to public health or the environment due to their toxic, corrosive, reactive, or ignitable characteristics.

Nonhazardous Ones

Items or substances that do not pose a significant risk to health, safety, or the environment when used or disposed of properly.

Pure Resins

Highly purified substances produced by plants that are valued for their chemical properties and used in a variety of applications, including as adhesives, varnishes, and incense.

Recycled

The process of converting waste materials into new materials and objects, aiming to reduce use of raw materials, energy consumption, and environmental impact.