When computing diluted earnings per share (EPS), convertible bonds are: A. ignored. B. assumed converted whether they are dilutive or antidilutive. C. assumed converted only if they are antidilutive. D. assumed converted only if they are dilutive.

When computing diluted earnings per share (EPS), convertible bonds are: A. ignored. B. assumed converted whether they are dilutive or antidilutive. C. assumed converted only if they are antidilutive. D. assumed converted only if they are dilutive.

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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Question

When computing diluted earnings per share (EPS), convertible bonds are:
A. ignored.
B. assumed converted whether they are dilutive or antidilutive.
C. assumed converted only if they are antidilutive.
D. assumed converted only if they are dilutive.

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