Dilutive Securities and Earnings Per Share Multiple Choice

In: Business and Management

Submitted By Mrwec
Words 12762
Pages 52
CHAPTER 16

DILUTIVE SECURITIES AND EARNINGS PER SHARE

IFRS questions are available at the end of this chapter.

TRUe-FALSe—Dilutive Securities—Conceptual

Answer No. Description

T 1. Accounting for convertible bond issue. F 2. Reporting gain/loss on convertible debt retirement. T 3. Reporting additional payment to encourage conversion. F 4. Exercise of convertible preferred stock. F 5. Convertible preferred stock exercise. T 6. Allocating proceeds between debt and detachable warrants. F 7. Allocating proceeds from nondetachable warrants. T 8. Intrinsic value of a stock option. F 9. Compensation expense in fair value method. T 10. Service period in stock option plans. F 11. Accounting for nonexercise of stock options. F 12. Accounting for stock option forfeiture. T 13. Cumulative preferred stock and EPS. F 14. Restating shares for stock dividends and stock splits. T 15. Stock dividend and weighted-average shares outstanding. F 16. Preferred dividends and income before extraordinary items. T. 17. Reporting EPS in complex capital structure. F. 18. Dilutive stock options. T 19. Contingent issue shares. F 20. Reporting EPS for income from continuing operations.

Multiple Choice—Dilutive Securities, Conceptual

Answer No. Description

d 21. Nature of convertible bonds. d 22. Recording conversion of bonds. b 23. Definition of bond sweetener. c S24. Reasons for issuing convertible debt. a S25. Reporting gain/loss on conversion of bonds. d S26. Accounting for conversion of preferred stock. b 27. Recording conversion of preferred stock. d 28. Bonds issued with detachable stock warrants. d 29. Debt equity features of debt issued with stock warrants. d 30. Classification of stock warrants outstanding. d P31. Bonds issued with detachable stock warrants. c P32. Distribution of stock rights. b…...

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