Answered: Potential dilutors are anti-dilutive if…

Potential dilutors are anti-dilutive if they increase basic earnings per share and they should not be included in the computation of diluted earnings per share. O True O False

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter6: Professional Accounting In The Public Interest

Section: Chapter Questions

Problem 18.1EC

See similar textbooks

Related questions

Q: What is the impact of decrease in assets or increase in liabilities resulting in decreases in…

A: when the assets reduces, the profits of the company also tends to fall. there can be no chance of…

Q: Is it because: a. The capital gain will be different because the dividend did not change. or…

A: Capital gain can be calculated s follows: Capital gain=(Sale price - Cost price)Cost price* 100

Q: Which TWO of the following are possible effects of rising prices upon financial statements?…

A: We have the following question: Which TWO of the following are possible effects of rising prices…

Q: Why are preferred dividends deducted from net income when calculating EPS? Are there circumstances…

A: Net income is the result of total expenses from the total revenue. EPS is the short form of Earnings…

Q: Which of the following statements is incorrect? * O An imposed budget is the same as a participative…

A: Answer: Budget is the statement that is prepared for revenue and expenses as an estimation made by…

Q: A financial manager’s goal of maximizing current or short-term earnings may not be appropriate…

A: Financial Manager goal is to maximize the wealth of the shareholders by increasing the profitability…

Q: What is the difference between dividends that are declared and dividends that are paid

A: There exist difference between dividend that is declared and paid

Q: equity does not represent the market value of the company

A: There are various methods of arriving at a fair valuation of a company. Each of the methods give us…

Q: A company's market value is generally less than its book value. True of Falses ?

A: Fixed Assets are the Non-current portion of the assets that disclosed in the assets section of the…

Q: Whispering Corporation had net sales of $2,417,800 and interest revenue of $34,900 during 2020.…

A: Earnings per share is the profit earned by the company towards the shareholders. It is the monetary…

Q: What would be a reason a company would want to overstate income?A. to help nudge its stock price…

A: Income of the business is very important and useful measure of profitability of the business. More…

Q: A financial manager's goal of maximizing current or short-term earnings may not be appropriate…

A: Financial manager is a person who controls or monitors the overall finances of the company.…

Q: Which of the following statements is false regarding the abnormal earnings approach to valuation?…

A: Abnormal earning valuation This method of valuation helps to determine company’s net worth based on…

Q: what reduces both basic earnings and dilluted earnings per share?

A: There are several factors that can reduce both basic earnings per share (EPS) and diluted EPS:…

Q: Respond to Jerry’s criticism that shareholders’ equity does not represent the marketvalue of the…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: Analyze the truth of this statement: Under the cost method of accounting for investments, a…

A: Cost Method of Accounting for Investments: When it comes to recognizing particular investments in a…

Q: Why is "Projecting Growth Beyond What the Capital Being Valued Will Support" considered a common…

A: Income Approach There are two different model which was incurred in the income approach. The…

Q: Statement I. Book value per share is tantamount to earnings per share Statement II. Dividends…

A: Book value per share is ratio of shareholders equity less preferred equity to number of shares…

Q: True or False: All else being equal, a decrease in a company's profit margin will result in an…

A: Return on assets = Net income / Total assets So, if the profit margin decreases then, the return on…

Q: Why does income smoothing generally lead to a higher share value? a. It reduces the perceived risk…

A: Income smoothing is the act of using accounting methods to level out fluctuations in net income from…

Q: Dividends are sometimes said to have been paid “out of retained earnings.” What is the error, if…

Q: How a firm splits its income between retained earnings and dividends does not affects its rate of…

A: Income is the revenue earned by the company after the charge of all the associated expenses. A…

Q: Which of the following does not decrease retained earnings? Select one: a. Stock dividends b. Cash…

A: In this question has covered the concept of Retained Earnings

Q: Is there any difference between the words "issued" and "paid" a dividend? Is there any chance the…

A: When a company issues a stock dividend, it means that additional shares of stock are distributed to…

Q: True of False? Contributed capital decreases when the company has a net loss. If your answer is…

A: Net income is an excess of revenue over expenditure and Net loss indicates that there are more…

Question

Potential dilutors are anti-dilutive if they increase basic earnings per share and they should not be included in the computation of diluted earnings per share.

O True

O False

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:-

VIEW

Step 2: Explanation:-

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Earnings Quality, Measurement and Management

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

what reduces both basic earnings and dilluted earnings per share?
What is the difference between dividends that are declared and dividends that are paid? There is no difference When they are declared they reduce Net Income and when they are paid they reduce cash When they are declared they increase Net Income and when they are paid they reduce cash When they are declared they reduce Common Stock and when they are paid they increase Dividends Payable When they are declared they reduce Retained Earnings and when they are paid they reduce Dividends Payable
A financial manager's goal of maximizing current or short-term earnings may not be appropriate because: Multiple Choice it considers the timing of the benefits. share ownership is widely dispersed. increased earnings may be accompanied by acceptably higher levels of risk. earnings are subjective, they can be defined in various ways such as accounting or economic earnings
What would be a reason a company would want to overstate income?A. to help nudge its stock price higherB. to lower its tax billC. to show a decrease in overall profitsD. none of the above
Explain why there is a cost to using reinvested earnings; that is,why aren’t reinvested earnings a free source of capital?
Respond to Jerry’s criticism that shareholders’ equity does not represent the marketvalue of the company. What information does the balance sheet provide?
Why does Non-GAAP earnings are controversial?
Respond Anna's criticism that shareholders’ equity does not represent the market value of the company
What is the impact of decrease in assets or increase in liabilities resulting in decreases in equity, other than distributions to equity holders on the profit of the company? a.None of the options b.The profit of the company declines c.The profit of the company remains d.The profit of the company inclines
Which one does not decrease retained earnings? Net loss Net income Appropriation Dividends
True of False? Contributed capital decreases when the company has a net loss. If your answer is “False”, then explain (in one sentence) why the statement is false.
Is there any difference between the words "issued" and "paid" a dividend? Is there any chance the correct answer to be "C" because the dividend is "issued" and not "paid"?