A is corrent because a potentially dilutive security is a security that gives the holder the right to acquire shares of common stock through conversion or exercise, and therefore is considered in the computation of diluted earnings per share (DEPS) if dilutive. Antidilutive securities are securities that would create an increase in DEPS if included in the calculation of diluted EPS and should not be considered when computing either basic or EPS.
B is incorrect because antidilutive securities are never considered in the computation of earnings per share.
B is incorrect because antidilutive securities are never considered in the computation of earnings per share.
D is incorrect because potentially dilutive securities should not be ignored. Refer to the correct answer explanation.
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