Firms with convertible preferred stock or other potentially dilutive securities outstanding

a. must present dual earnings-per-share amounts.
b. calculate basic earnings per share by taking net income attributable to common stock and dividing by the average number of common shares outstanding during the period.
c. calculate diluted earnings per share when a firm has securities outstanding that, if exchanged for common stock would decrease basic earnings per share by 3 percent or more.
d. all of the above
e. none of the above


D

Business

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Phantom profits result when absorption costing is used and sales exceed production

Indicate whether the statement is true or false

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Business

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Business

Consideration exchanged for a promise does not require both legal detriment to the promisee and legal benefit to the promisor

Indicate whether the statement is true or false

Business