If All of the Dilutive Securities Were Converted into Ordinary

question 3

Multiple Choice

If all of the dilutive securities were converted into ordinary shares, the diluted earnings per share ratio:

• A) must include an adjustment to increase the number of ordinary shares that would be outstanding.
• B) may include an adjustment to increase the weighted average number of ordinary shares that would be outstanding.
• C) must include an adjustment to increase the weighted average number of ordinary shares that would be outstanding.
• D) must include an adjustment to decrease the weighted average number of ordinary shares that would be outstanding.