Which statement is incorrect? *Dilution is an increase in earnings per share when convertible instruments are converted to ordinary shares.Diluted EPS is required when there are potential shares outstanding.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 sharesOptions 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.none of the above

Earnings per share in the business means how much earnings is attributable for each shareholder or…

Answered: Which statement is incorrect? *…

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? *

Dilution is an increase in earnings per share when convertible instruments are converted to ordinary shares.
Diluted EPS is required when there are potential shares outstanding.
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
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.
none of the above

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