3 in he t component of an aparthe FAB Boncluded that thou d ben bigation provides a more reste mesure of person obligation on going concern boss a company should employ an acara tunding method to report person spons that best act the cost of benefits to ory the projected benefit obligation using future compensation avais provides a to o ur of present pension obligation and expense. 4. The interest on the projected benefit obligation component of pension experve reflects the incremental borrowing rate of the employer refects the rates at which pension benefits pould be effectively settled is the same as the expected return on plan assets may be stated implicitly or explicitly when reported 5 Preferred dividends are subtracted from carings when computing camnings per share whether or not the dividends are declared or paid if the preferred stock is: Cumulative b. Convertible c. Participating d. Callable 8 A simple capital structure might include: Nonconvertible preferred stock b. Convertible bonds. Stock rights. c. Stock purchase warrants. 7. preferred stock is non-cumulative and dividends are declared the company subtracts the current year preferred dividend in computing earnings per share. TRUE FALSE 8. When stock dividends or stock splits occur, companies must restate the shares outstanding beforer the stock dividend or split, in order to compute the weighted-average number of shares. TRUE FALSE 9. Dilutive convertible stock options affect both the numerator and the denominator in computing diluted EPS. TRUE FALSE 10. Stock options will be dilutive and included in the calculation of dilutive EPS if the exercise price is smaller than the average market value of the stock. TRUE FALSE 1 In stock option, compensation expense is measured as the fair value of the stock option at the grant date and then debited to compensation expense and credited to paid in capital for the total amount TRUE FALSE tion as estimated by the option pricing model is reported as compensation exper antin was given. TRUE FALSE