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Home Q & A Board Other Fields Homework Help Business Accounting
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tori.warner tori.warner
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6 years ago
What is the protocol to determine if multiple potentially dilutive securities are actually dilutive or antidilutive?
Textbook 
Intermediate Accounting

Intermediate Accounting


Edition: 1st
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#1
6 years ago
 When multiple potentially dilutive securities are present, determine the sequencing order for each of the securities by computing the incremental income per share and then ranking the order of entry for each.  The incremental income per share is the increase in income divided by the increase in common shares caused by the security. Order the results from the lowest incremental income per share to the highest as you compute diluted EPS.
tori.warner Author
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#2
6 years ago
My teacher is very rude and likes to speed his way through a lesson without letting the class ask questions. Thank you for helping me. You're a life saver Slight Smile
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