Which Statement Is Correct

question 17

Multiple Choice

Which statement is correct?

• A)Dilutive potential ordinary shares,if converted,will decrease EPS or increase the loss per share from continuing operation.
• 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.

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Definitions:

Gross Margin

The difference between revenue and cost of goods sold (COGS), which reflects the profitability of a company's core activities excluding overhead costs.

Net Operating Income

The profit a company makes from its regular business operations, excluding deductions of interest and taxes.

Sales

The total income generated from goods or services sold by a company before any costs or expenses are deducted.

Stockholders' Equity

The residual interest or ownership of a company's shareholders after all liabilities have been deducted from total assets.