Multiple Choice: Special Items and Earnings Per Share Select the correct answer for each of the following:b. Amounts that would have been reported if a different procedure or assumption had been used.

c. Amounts reported on specified government forms.

d. Incorrect amounts.

4, A change in an accounting estimate:

a. Requires a restatement of prior years’ financial statements.

b. Should not recur again in the foreseeable future.

c. Is reflected in the current and future periods.

d. Results in a cumulative adjustment in the income statement in the period in which the change in estimate is made.

5. Basic earnings per share is based on:

a. Earnings available to common stockholders and the year-end number of common shares outstanding.

b. Earnings available to common stockholders and the weighted average number of common shares outstanding during the period.

c. Operating income and the year-end number of common shares outstanding.

d. Operating income and the number of common shares outstanding at the beginning of the period.

6. If convertible bonds are outstanding at the end of the accounting period, reported earnings per share will:

a. Include the dilutive effects of the bonds in both basic and diluted earnings per share.

b. Ignore the dilutive effects until the bonds are converted.

c. Include the dilutive effects of the bonds in diluted earnings per share, but not in basic earnings per share.

d. Be reported only in the notes to the financial statements.