Develop brief answers to each of the following questions:

1. What is one way a company can improve its earnings per share without improving its earnings or net income?

2. Why is comprehensive income a part of stockholders’ equity?

3. Upon receiving shares of stock from a stock dividend, why should the stockholder not consider the value of the stock as income?

4. What is the effect of a stock dividend or a stock split on book value per share?

Effect of Alternative Accounting Methods