10. 11. 14.15. 17. 18

10 Nonconvertible bonds affect the calculation of:

Multiple Choice

Diluted earnings per share.

None of these answer choices are correct

Basic earnings per share.

Basic earnings per share and Diluted earnings per share.

11. Treasury shares are most often reported as:

Multiple Choice

A reduction of retained earnings.

A reduction of total paid-in capital.

A reduction of total shareholders' equity.

An expense in the income statement.

14. Stock options do not affect the calculation of:

Multiple Choice

Diluted EPS.

The denominator in the diluted EPS fraction.

Weighted-average common shares.

Basic EPS.

15. The reporting of earnings per share is required only for:

Multiple Choice

Medium-sized and large corporations.

Companies with complex capital structures.

Private companies.

Publicly traded corporations.

17. When dividends are declared in one fiscal year and paid in the next fiscal year, the liability for the dividend should be recorded as of the:

Multiple Choice

Date of payment.

Date the dividend is declared.

Date of record.

Last day of the fiscal year.

18. When computing earnings per share, noncumulative preferred dividends not declared should be:

Multiple Choice

Added to earnings for the year.

Deducted, net of tax effect, from earnings for the year.

Ignored.

Deducted from earnings for the year.