Which of the following is correct regarding earnings per share (EPS)?
A) If preferred stock is outstanding,dividends declared on the preferred stock are always deducted from net income in calculating EPS.
B) EPS can never be negative.
C) All issues of convertible to common stock must be included in the calculation of diluted EPS.
D) If income from continuing operations is less than zero,potentially dilutive securities are anti-dilutive.

Question

Quizplus · Accepted Answer

If income from continuing operations is less than zero, potentially dilutive securities are considered anti-dilutive because they would increase EPS, not decrease it.

Which of the Following Is Correct Regarding Earnings Per Share