Which of the Following Statements About Earnings Per Share Is

question 33

Multiple Choice

Which of the following statements about earnings per share is false?

• A)Diluted earnings per share reflects the maximum possible dilution that could result from turning convertible and nonconvertible securities into common stock
• B)Net income is reduced by applicable preferred dividends in determining earnings per share
• C)Earning per share permits useful comparison of the performance of firms of different size
• D)Firms with convertible securities present both basic and diluted earnings per share

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