Concerning Earnings Per Share for a Complex Capital Structure,which of the Following

Concerning earnings per share for a complex capital structure,which of the following statements is incorrect?

A) Basic earnings per share must be based on the weighted average number of common shares outstanding.
B) Both basic and diluted earnings per share must be presented on the face of the financial statements.
C) A "convertible security" is a security which is not, in form, a common share but which contains provisions to enable its holder to become a common shareholder.
D) "Basic earnings per share" is never reported at less than "diluted earnings per share."
E) If the only potentially dilutive security outstanding is an employee stock option plan, then primary and diluted EPS must be equal.

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