Acct

Where in the financial statements should basic and complex EPS figures for income from continuing operations be reported?

On the income statement

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

The amount of cash dividends declared on common shares

When computing diluted EPS for a company with a complex capital structure, what is the denominator in the computation?

Weighted-average number of common shares outstanding plus all other potentially dilutive securities

In determining earnings per share, interest expense, net of applicable income taxes, on convertible debt which is dilutive should be

added back to net income for diluted earnings per share

Under current GAAP, a company with a complex capital structure and potential earnings per share dilution must present

basic and diluted earnings per share

When computing dilutive EPS, the treasury stock method can be used for all of the following except

convertible preferred stock

When computing earnings per share on common stock, dividends on cumulative, nonconvertible preferred stock should be

deducted from net income regardless of whether the dividends were not paid or declared in the period

The EPS computation that is forward-looking and based on assumptions about future transactions is

diluted EPS

In calculating earning per share, stock options warrants, and rights are

dilutive if the exercise price is less than the average market price of the common stock.

When using the if-converted method to compute diluted earnings per share, convertible securities should be

included only if dilutive.

The main purpose of reporting diluted earnings per share is to

show the maximum possible dilution of earnings.