ACC 302 Ch 19-20 NO answers

ACC 302 Ch 19-20 NO answers - ACC 302 Ch 19-20 Multiple...

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ACC 302 Ch 19-20 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. The if-converted method of computing EPS data assumes conversion of convertible securities at the a. beginning of the earliest period reported (or at time of issuance, if later). b. beginning of the earliest period reported (regardless of time of issuance). c. middle of the earliest period reported (regardless of time of issuance). d. ending of the earliest period reported (regardless of time of issuance). ____ 2. When computing dilutive EPS, the treasury stock method can be used for all of the following except a. convertible preferred stock. b. stock warrants. c. stock options. d. stock rights. ____ 3. In calculating earning per share, stock options warrants, and rights are a. always dilutive. b. never dilutive. c. dilutive if the exercise price is less than the average market price of the common stock. d. dilutive if the exercise price is more than the average market price of the common stock. ____ 4. The Thomas Company's net income for the year ended December 31 was $30,000. During the year, Thomas declared and paid $3,000 in cash dividends on preferred stock and $5,250 in cash dividends on common stock. At December 31, 36,000 shares of common stock were outstanding, 30,000 of which had been issued and outstanding throughout the year and 6,000 of which were issued on July 1. There were no other common stock transactions during the year, and there is no potential dilution of earnings per share. What should be the year's basic earnings per common share of Thomas, rounded to the nearest penny? a.
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ACC 302 Ch 19-20 NO answers - ACC 302 Ch 19-20 Multiple...

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