When calculating diluted earnings per share,which of the following items is NOT considered?
A) number of common shares outstanding
B) additional common shares from conversion of convertible securities
C) additional common shares from exercise of stock options
D) number of common shares authorized to be issued

Question

Quizplus · Accepted Answer

The number of common shares authorized to be issued is not relevant to the calculation of diluted earnings per share as it refers to the maximum number of shares a company is allowed to issue, rather than the actual number of shares outstanding or potentially outstanding.

When Calculating Diluted Earnings Per Share,which of the Following Items