Which statement is correct?
A)Dilutive potential ordinary shares, if converted, will decrease EPS or increase the loss per share from continuing operations.
B)Dilutive potential ordinary shares, if converted, will increase EPS or increase the loss per share from continuing operations.
C)Anti-dilutive potential ordinary shares, if converted, will increase EPS or increase the loss per share from continuing operations.
D)Anti-dilutive potential ordinary shares, if converted, will decrease EPS or decrease the loss per share from continuing operations.

Question

Quizplus · Accepted Answer

Dilutive potential ordinary shares, if converted, would result in an increase in the number of shares outstanding, which typically decreases earnings per share (EPS) or increases the loss per share from continuing operations, as it spreads the earnings or losses over a larger number of shares.

Which Statement Is Correct