Kieso Ch 16 Intermediate Accounting
Earnings Per Share, Diluitive Securities
- 1.Earnings per share is calculated for
- A.
Preferred stock
- B.
Common stock
- C.
Callable stock
- D.
Divisible stock
- 2.A simple capital structure consists of
- A.
Only of common stock
- B.
No potential common stock that could dilute earnings no additional common stock which could lower eps
- C.
Securities that could have a diluitive effect
- D.
A and b
- 3.EPS is deplayed for each component except
- A.
Income from continuing operations
- B.
Discontinued operations
- C.
Extraordinary items
- D.
None of the above
- 4.The treasury stock method applies to
- A.
Common stock
- B.
Treasury stock
- C.
Stock options and warrants
- 5.The treasury stock method uses the following calculation
- A.
(Average Market Price-Option Price)/Average Market Price
- B.
(Market Price-Option Price)/Market Price
- C.
(Average Market Price-Option Price)/Market Price
- D.
(Market Price-Option Price)/Average Market Price
- 6.Which of the following is not a potentially dilutive security?
- A.
Warrants
- B.
Options
- C.
Contingent shares
- D.
Convertible bonds or preferred stock
- E.
Option for $25 when market price is $20
- 7.Which is not a feature of a convertible bond...?
- A.
Entices investor with lower interest rate
- B.
Get capital without giving up ownership control
- C.
Entices investors with a higher interest rate
- 8.Compensation is expense is recognized for which method of stock option accounting
- A.
Intrinsic value
- B.
Fair value
- 9.Compensation expense equals the FMV of the stock minus the exercise price on the date of grant
- A.
Par value
- B.
Intrinsic value
- C.
Fair value
- 10.Total compensation compute is based on the fair value of the options expected to vest on date optiosn granted to employees
- A.
Par value
- B.
Intrinsic value
- C.
Fair value
- 11.When instrinsic value is used a footnote disclosure is required for what impact would have been if fair value method was used
- A.
True
- B.
False
- 12.Compensation expense is not reported if
- A.
Substantially all employees may participate
- B.
Discount from market place is small
- C.
Plan offers no substantive option feature
- D.
All of the above
Questions: 132 | Attempts: 3132 | Last updated: Apr 6, 2022
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Sample QuestionOn December 31, 2009, Otter Company had investments in trading securities as follows: COST MARKET VALUE Man Company 1,000,000 1,300,000 Kemo Company 900,000 1,100,000 Fenn Company 1,100,000 900,000 3,000,000 3,300,000 Otter's December 31, 2009 balance sheet should report the following trading securities at:
Questions: 17 | Attempts: 2130 | Last updated: Mar 22, 2022
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Sample QuestionWhich of the following is correct about soft assets?
Questions: 17 | Attempts: 546 | Last updated: Mar 21, 2022
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Sample QuestionAn example of an item which is not a liability is