isn't B and C true?

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Philly1616

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Which of the following statements regarding basic and diluted earnings per share (EPS) is TRUE?

A) The basic EPS calculation considers the effects of dilutive securities.


B) To calculate diluted EPS, use net income less preferred dividends in the numerator.


C) Neither basic nor diluted EPS considers antidilutive securities in its computation.


D) If diluted EPS is less than basic EPS then the convertible securities are said to be antidilutive


The answer is C. Isn't B also true?
 
C is always true

B is not, becuase you may have convertible dilutive preferred
 
Super I said it. Shitty worded question...they should've said "most true", as they are both true, but B can have the third element.
 
There will be questions exactly like that on the test...and they won't ask which is the "most true"...but the safest best is to the with the "most true" choice.
 
I vote the opposite. I say B is definetly not true and the answer is C. The formula for diluted EPS includes converts, so I would naturally rule out B since it makes no mention of this.
 
uhh caspian

the opposite means that you say something different.

I said (quote from above)

"C is always true B is not, becuase you may have convertible dilutive preferred"

You said "B is definetly not true and the answer is C"

Talking about B before C is not the same as the opposite.
 
Well, you were saying couldnt B be true, and people seemed to be saying "it could, but..." I used opposite to imply my belief that it couldnt be true, whether thats right or wrong.

Thanks for defining it for me though. Im sure thats much better than having a totally rational conversation about what I meant. Definitely better.
 
Sorry, I'm in a pick on people mood this morning.

Nowhere did I say "couldn't B be true"; I gave an example to prove that B couldn't ALWAYS be true, meaning it was false. Other people went into the "most true" tangent, which is like saying "a little bit pregnant". If something is true, it is always true, not occasionally true (as I think you understand).

When you have questions like this, especially ones with the "which of the following is true" where you have answer choices like

Only A
Only B
Both A and B etc.,

The way to figure out the right answer (if you can't remember the formula/rule) is to find exceptions to individual statements that eliminate them, which is what I did, rather then get into an "open your book and look at the definition/calculation of diluted EPS on page ..." type of discussion. Here's an exception, so it can't be true. Period. My first post was an aattempt to give a brief example of this approach.
 
"Sorry, I'm in a pick on people mood this morning. "

No worries at all.

"Nowhere did I say "couldn't B be true"; "

My bad, you did not. I momentarily confused you with Philly, the original poster.
 
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