When is it appropriate to use the shortcut for calculating the weighted average shares outstanding? (NIE 9) When calculating basic EPS When performing ratio analysis When creating quarterly financial statements When evaluating anti-dilutive securities Question 2 Which of the following is true for basic EPS? (NIE 8) Basic EPS is usually smaller than Diluted EPS. Basic EPS appears on some income statements. Basic EPS is typically easier to calculate than Diluted EPS. Basic EPS is more of a 'what if' value than an actual value. How do equity options affect deferred taxes? (NIE 10) They result in a deferred tax asset until they are used. There is no way to determine the effect without seing the values. They have no effect on deferred taxes. They result in a deferred tax liability until they are used