3.In computing the service cost component of pension expense, the FAS a. the accumulated benefit obligation provides a more realistic measure of the pension b a company should employ an actuarial funding method to report pension expensethat c. the projected benefit obligation using future compensation d. all of these. obligation on a going concem basis. best reflects the cost of benefits to employees. measure of present pension obligation and expense. condludea levelis provides a resistic 4.The interest on the projected benefit obligation component of pension expense reflects the incremental borrowing rate of the employer a. c. is the same as the expected return on plan assets d. may be stated implicitly or explicitly when reportied. 5 Preferred dividends are subtracted from earnings when compating eanings per share wber or not the dividends are declared or paid if the preferred stock is a. Cumulative. b. Convertible. e.Participating. d. Callable. 6 A simple capital structure might include: a. Nonconvertible preferred stoclk b. Convertible bonds. c. Stock nghts. d. Stock purchase warrants. company subtracts FALSE beforer the stock dividend or split, in order to compute the weighted-average number of shares. TRUE FALSE 7If preferred stock is non-cumulative and dividends are deared, the the current year preferred dividend in computing earnings per share. TRUE 8. When stock dividends or stock splits occur, companies must restate the shares outstand-ing dilutive EPS if the exerse options will be dilutive and included in the calculation of i market value of the stook TRUE FALSE 9. Dilstive converiffer botor nd h de computing diluted EPS. TRUE FALSE 10. Stock 12 Total compensation as estimated by the option pricing model is reported as over the vesting period for which the option was given. TRUE FALSE 11 In stock option, compensation expense is measured as the fair value of the stock option ar the gra date and then debited to coipnsation UEGetia TRUE FALSE