Accounting Professor on TikTok
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Accounting Professor on TikTok
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Replying to @Kevin in intro #accounting we learn about #earnings per share, which is (net income - preferred dividends) / weighted common shares outstanding. In #intermediate accounting, we expand this to consider diluted #EPS , which simply creates a “worst case scenario” by assuming any and all convetible financial instruments (e.g., convertible bonds, convertible preferred stock, stock options, warrants, etc.) are converted into shares of common stock. This increases the denominator (leaving
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Replying to @Kevin in intro #accounting we learn about #earni…
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