Which statement is correct about the "income effect" on EPS? A) This is the incremental before-tax income available to ordinary shareholders. B) This is the incremental after-tax income available to ordinary shareholders. C) This is the incremental number of ordinary shares outstanding before conversion. D) This is the incremental number of ordinary shares outstanding after conversion. 1.1 Which statement is correct? A) The numerator for diluted EPS is the same as the numerator for basic EPS. B) Potential ordinary shares are derivative instruments that entitle the holder to commodities C) Potential ordinary shares are financial instruments that entitle the holder to ordinary shares. D) The numerator for diluted EPS is always greater than the numerator for basic EPS. 1.2 ??: Which statement is correct about the "if-converted" method for EPS? A) This method assumes the convertible security is converted into ordinary shares at the end of the fiscal period. B) This method assumes the convertible security is converted into ordinary shares at the beginning of the fiscal period. C) This method assumes the converible security is converted into ordinary shares evenly over the fiscal period D) This method assumes the convertible security is converted into ordinary shares at the mid-point of the iscal period. 1.3