Accounting Ch9 part2

Accounting Ch9 part2 - Basic earnings per share net income...

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Unformatted text preview: Basic earnings per share net income available to common stockholders divided by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share an amount less than basic earnings per share that assumes that additional shares of common stock have been issues pursuant to convertible debt, convertible preferred stock, and/or stock option plans. Two principal alternative presentations of income statement data: the single-step format and the multi-step format. Discontinued operations: When a segment, or major portion of a business, is disposed of, it is appropriate to disclose separately the impact that the discontinued operation has had on the current operations of the firm, as well as its impact on any previous year results that are shown for comparative purposes. Extraordinary items: the amount involved has a significant after-tax income statement effect (pension plan terminations, some litigation settlements, utilization of tax loss carry...
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