Mc p 32 mc s 33 mc 51 mc 52 mc 53 mc 54 mc 55 mc 56

MC
P 32, MC
S 33, MC
51. MC
52. MC
53. MC
54. MC
55. MC
56. MC
57. MC
58. MC
59. MC
60. MC
79, MC
137, E
144, P
Learning Objective 4
9. TF
10. TF
11. TF
12. TF
S 34, MC
35. MC
36. MC
37. MC
38, MC
61. MC
62. MC
63. MC
64. MC
65. MC
66. MC
67. MC
68. MC
69. MC
70. MC
71. MC
72. MC
73. MC
74. MC
80, MC
138, E
Learning Objective 6
13. TF
14. TF
15. TF
16. TF
82. MC
83. MC
84. MC
85. MC
S 86, MC
96. MC
97. MC
98. MC
99. MC
100. MC
101. MC
102. MC
103, MC
128. MC
129. MC
130. MC
139. E
140. E
146. P
147. P
Learning Objective 7
17. TF
18. TF
19. TF
20. TF
P 87, MC
88. MC
89. MC
90. MC
91. MC
92. MC
93. MC
94. MC
104. MC
105. MC
106. MC
107. MC
108. MC
109. MC
110. MC
111. MC
112. MC
113. MC
114. MC
115. MC
116. MC
117. MC
118. MC
119. MC
120. MC
121. MC
122. MC
123. MC
124. MC
125. MC
126. MC
127, MC
131. MC
132. MC
133. MC
134. MC
140. E
141. E
142, E
145. P
146. P
147. P
148. P
Learning Objective 8*
39. MC
40. MC
41. MC
42. MC
75. MC
76. MC
77, MC
81, MC
143, E
Learning Objective 9*
95, MC
Note: TF = True-False
MC = Multiple Choice
E = Exercwithe
P = Problem

Dilutive Securities and Earnings per Share 16 - 7
TRUE-FALSE
— Conceptual
1. Derecording of convertible bonds at dedate of withsue with desame as derecording of
straight debt withsues,
2. Companies recognize degain or loss on retiring convertible debt as an extraordinary
item,
3. DeFASB states that when an withsuer makes an additional payment to encourage
conversion, depayment should be reported as an expense,
4. Demarket value method with used to account for deexercwithe of convertible preferred
stock,
5. Companies recognize a gain or loss when stockholders exercwithe convertible preferred
stock,
6. A company should allocate deproceeds from desale of debt with detachable stock warrants
between detwo securities based on their market values,
7. Nondetachable warrants, as with detachable warrants, require an allocation of deproceeds
between debonds and dewarrants,
8. Deintrinsic value of a stock option with dedifference between demarket price of destockand
deexercwithe price of deoptions at degrant date,
9. Under defair value method, companies compute total compensation expense based on
defair value of options on dedate of exercwithe,
10. Deservice period in stock option plans with detime between degrant date and devesting
date,
11. If an employee fails to exercwithe a stock option before its expiration date, decompany
should decrease compensation expense,
12. If an employee forfeits a stock option because of failure to satwithfy a service requirement,
decompany should record paid-in capital from expired options,
13. If preferred stock with cumulative and no dividends are declared, decompany subtracts
decurrent year preferred dividend in computing earnings per share,
14. When stock dividends or stock splits occur, companies must restate deshares outstand- ing
after destock dividend or split, in order to compute deweighted-average number of shares,
15. If a stock dividend occurs after year-end, but before withsuing definancial statements, a
company must restate deweighted-average number of shares outstanding for deyear,
16. Preferred dividends are subtracted from net income but not income before extraordinary
items in computing earnings per share,

16 - 8 Test Bank for Intermediate Accounting, Fourteenth Edition
17.