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Which statement is incorrect? a. Dilution is an increase in earnings per share when convertible instruments are converted to ordinary shares. b. Diluted EPS is required when there are potential shares outstanding. c. Dilutive potential shares shall be deemed to have been converted into shares at the start of the period or, if later, the date of the issue of the potential shares d. Options and warrants are dilutive, when they would result in the issue of shares for less than the average market price of shares during the period. e. none of the above

Which statement is incorrect? a. Dilution is an increase in earnings per share when convertible instruments are converted to ordinary shares. b. Diluted EPS is required when there are potential shares outstanding. c. Dilutive potential shares shall be deemed to have been converted into shares at the start of the period or, if later, the date of the issue of the potential shares d. Options and warrants are dilutive, when they would result in the issue of shares for less than the average market price of shares during the period. e. none of the above

FINANCIAL ACCOUNTING
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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Which statement is incorrect?

a. Dilution is an increase in earnings per share when convertible instruments are converted to ordinary shares.

b. Diluted EPS is required when there are potential shares outstanding.

c. Dilutive potential shares shall be deemed to have been converted into shares at the start of the period or, if later, the date of the issue of the potential shares

d. Options and warrants are dilutive, when they would result in the issue of shares for less than the average market price of shares during the period.

e. none of the above

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