Key Words

Question 0

Diluted earnings per share

Answer 0

The amount of earnings for the period available to each share of common stock outstanding during the reporting period and to each share that would have been outstanding assuming the issuance of common share for all dilutive potential common shares outstanding during the reporting period

Question 1

Basic earnings per share

Answer 1

The amount of earnings for the period available to each share of common stock outstanding during the reporting period

Question 2

Treasury stock method

Answer 2

A method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants in computing diluted earnings per share. It assumes that any proceeds would be used to purchase common stock at the average market price during the period

Question 3

Weighted average common shares

Answer 3

The number shares determined by relating the portion of time within a reporting period that common shares have been outstanding to the total time in that period. In computing EPS equivalent common shares are considered for all dilutive potential common shares