Assets are financed both by debt and equity. “Equity“ represents the “net assets“ of a corporation. This concept can be compared to owning a house (asset) with an outstanding mortgage note (liability). If the house is valued at... 

FASB Statement No. 128 (Earnings Per Share) requires the computation of basic EPS and diluted EPS. Basic EPS includes only the actual number of outstanding shares during the period. Diluted EPS includes the effect of common shares actually outstanding...