Required InformationKnowledge Check 01Which of the following statements about contingently issuable shares are true? (Select all that apply.)Check All That ApplyContingently issuable shares are shares of common stock to be issued, contingent on the occurrence of some future circumstance.If contingently issuable shares will be issued at a future date if a certain level of income is achieved and that level of income or more wasalready reported this year, those additional shares are added to the numerator of the diluted EPS fraction.If contingently issuable shares will be issued at a future date if a certain level of income is achieved and that level of income or more wasalready reported this year, those additional shares are added to the denominator of the diluted EPS fraction.When calculating EPS, contingently issuable shares are always considered to be outstanding in the computation of diluted EPS.Prev17 of 18Next>IMG-1896.jpgIMG-1895.jpgIMG-1894.jpgndf.

Contingency represents the fulfilment of a task at a contingent event, which may or may not arise in…

Answered: Knowledge Check 01 Which of the…

Knowledge Check 01 Which of the following statements about contingently issuable shares are true? (Select all that apply.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Required Information
Knowledge Check 01
Which of the following statements about contingently issuable shares are true? (Select all that apply.)
Check All That Apply
Contingently issuable shares are shares of common stock to be issued, contingent on the occurrence of some future circumstance.
If contingently issuable shares will be issued at a future date if a certain level of income is achieved and that level of income or more was
already reported this year, those additional shares are added to the numerator of the diluted EPS fraction.
If contingently issuable shares will be issued at a future date if a certain level of income is achieved and that level of income or more was
already reported this year, those additional shares are added to the denominator of the diluted EPS fraction.
When calculating EPS, contingently issuable shares are always considered to be outstanding in the computation of diluted EPS.
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