Which Statement Is Correct About Potential Ordinary Shares (POS)

question 23

Multiple Choice

Which statement is correct about potential ordinary shares (POS) ?

• A)Dilutive POS decrease EPS.
• B)Dilutive POS increase EPS.
• C)Anti-dilutive POS decrease EPS
• D)Anti-dilutive POS are included in EPS.

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Definitions:

Straight-Line Depreciation

A strategy for dividing the cost of a substantial asset through its operational life in even yearly portions.

Productivity

The measure of efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Machinery

Industrial or commercial equipment designed to perform specific tasks, often part of the manufacturing or production process.

Federal Income Tax

A tax levied by the federal government on the annual income of individuals, corporations, trusts, and other legal entities.