The potential dilutive effect of convertible debt or preferred stock, stock options, and warrants should be disclosed in accordance with relevant accounting guidance in computing primary and fully diluted earnings per share.

Question

Quizplus · Accepted Answer

Dilutive potential of convertible debt or preferred stock, stock options, and warrants should be considered and disclosed in the computation of earnings per share, in compliance with accounting regulations.

The Potential Dilutive Effect of Convertible Debt or Preferred Stock