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Contracts may be indexed to or potentially settled in an entity's own stock. Which of the following settlement methods provides that one party in the

Contracts may be indexed to or potentially settled in an entity's own stock. Which of the following settlement methods provides that one party in the contract (the buver) delivers the full stated amount of cash to the seller who delivers the full stated amount of shares?

a. Physical settlement.

B. Net share settlement

c. Net-cash settlement.

d. The fair value option.

For a contract that is indexed to, or potentially settled, in an entity's own shores, ASU 2020-06 amended the additional criteria for equity classification by removing three criteria under legocy GAAR . Which of the following still retained as an additional criterion to receive l equity classification for a contract that is indexed to, or potentially settied in an entity's own stock?

a. The contract permits the company to settle in unregistered shares.

b. The company has sufficient authorized and unissued shares available to settle the contract after considering all other commitments that may require the issuance of stook.

c. There are no provisions in the contract that indicate that the counterparty has rights that rank higher than those of a shoreholder of the stook underlying the contract.

D. There is no requirement in the contract to post collateral at any point or for ony reason.

Which of the following is a method of computing earnings per share (EPS) data assuming conversion of convertible securities at the beginning of the reporting period (or time of issuance if later??

a. Basic EPS.

b. Diluted EPS.

c. The if-converted method

d. The treasury stock method.

Under ASU 2020-06, the amendments to the guidance for earnings per share provide that an entity shall no longer use which of the following methods or model for computing diluted EPS for all convertible instruments?

a. The treasury stock method.

b. The if-converted method.

c. The embedded derivative model.

d. The fair value option.

Which of the following is the effective date of adoption of ASU 2020-06 for the annual reporting period of a public business entity that is not a smaller reporting company?

a. For fiscal years beginning after December 15, 2020.

b. For fiscal years beginning after December 15, 2021.

c. For fiscal years beginning after December 15, 2022.

d. For fiscal years beginning after December 15, 2023,

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