In Calculating Diluted Earnings Per Share,which of the Following Should

question 20

Multiple Choice

In calculating diluted earnings per share,which of the following should not be considered?

• A) The weighted average number of common shares outstanding
• B) The amount of dividends declared on cumulative preferred shares
• C) The amount of cash dividends declared on common shares
• D) The number of common shares resulting from the assumed conversion of debentures outstanding

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Definitions:

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.

Output Per Hour

A measure of productivity calculated by dividing the total output of goods and services by the total hours worked.

Marginal Productivity

The additional output that is produced by adding one more unit of a particular input while holding all other inputs constant.

Complements In Production

Goods that are produced together or their production levels are directly linked; an increase in the production of one leads to an increase in the production of the other.