Stock rights, options, and warrants determined to be dilutive when computing fully diluted earnings per share may be anti-dilutive when computing basic earnings per share.

Question

Quizplus · Accepted Answer

Stock rights, options, and warrants are not considered when computing basic earnings per share; they are only considered in the calculation of diluted earnings per share to assess their potential dilutive effect on earnings per share if exercised or converted into common stock.

Stock Rights, Options, and Warrants Determined to Be Dilutive When