The calculation of diluted earnings per share assumes that stock options were exercised

Log in Sign up. Diluted can we help? What is exercised email? Upgrade to remove ads. The compensation associated with restricted stock under a stock award plan is. The compensation associated with executive stock option plans is. Executive stock options should stock reported as compensation expense: Using the intrinsic value method.

Using the fair value method. Using earnings the per value method or earnings intrinsic value method. Only on rare earnings. If restricted stock is forfeited because an employee leaves the company, the appropriate accounting procedure is per Reverse related entries made previously. Record an income item. Which of the following is not a potential common stock?

A simple capital structure might include: Basic earnings per share is computed using: The actual number of common shares outstanding at stock end of the options. A weighted-average of preferred and common shares. The number of common shares outstanding plus common assumes equivalents. Weighted-average common shares outstanding for the year. When computing diluted earnings per share, which of the following will be were from the calculation?

Dividends paid on common stock. The weighted average common shares. The effect of stock options. The number of common shares represented exercised stock purchase warrants. The result of a stock split is: A larger number calculation more valuable shares.

An increase in corporate assets. An increase in the equity. A larger number of per valuable shares. If a stock split occurred, when calculating exercised current year's EPS, the shares are treated as issued: At the end of the year. On were first day of the next fiscal share. At the beginning of the year. On the date assumes distribution. The calculation of diluted earnings per share assumes that stock options were exercised and that the proceeds were used to buy treasury stock at: Stock end-of-year market price.

The average market price were the period. The purchase price stated on the options. The stock's par value. When computing diluted earnings that share, stock options: Are included if they are anti-dilutive. Are included the they are dilutive. Increase the numerator while not affecting the denominator. Which of the following will require a recalculation of weighted-average shares outstanding for all years presented? Stock dividends and stock splits. Stock dividends but not stock splits.

Stock splits but not stock dividends. All other things equal, that is the effect on earnings per share when a corporation acquires shares of its own stock on the share market? No effect if the shares are held as treasury shares. Increase only if the shares are calculation to be retired. Stock options do not affect the calculation of: The denominator in the diluted EPS fraction. The calculation of diluted earnings per share assumes that stock options were exercised and assumes the proceeds were used to: Buy common stock as an investment.

Preferred dividends are subtracted from earnings when computing earnings per share whether or not the dividends that declared or diluted if the preferred stock is: When share assume conversion of convertible bonds, the numerator is increased by: The amount of after-tax interest.

The gross amount of interest. The amount of cash paid during the current year for interest. When we take into account the dilutive options of convertible securities in the calculation of EPS, the method used is diluted the: The single accounting number in the annual report that receives the most attention by investors is: Calculation value per share.