3. Antidilutive securities would generally be used in the calculation of :

Basic EPS Diluted EPS

a. Yes Yes

b. No Yes

c. No No

d. Yes No

4. The installment method of recognizing revenue is now acceptable for financial reporting if

a. The collectability of the sales price is reasonably assured

b. The installment period is less than 12 months

c. The method is applied to only a portion of the total

d. Collection is seriously in doubt such that an estimate of collections cannot be reasonably made.

5. Under what condition is it proper to recognize revenues prior to the sale of the merchandise?

a. When the ultimate sale of the goods is at an assured sales price

b. When the revenue is to be reported as an installment sale

c. When the concept of internal consistency (of amounts of revenue) must be complied with

d. When management has a long-established policy to do so