In discussing book value of common stock, which statement below is not correct?

Multiple Choice

• The terms "issued" and "outstanding" are synonymous when discussing the number of common shares.

• Book value is also referred to as total equity of the firm.

• If any preferred stock were outstanding, its carrying amount would be deducted from the total equity to obtain the common equity.

• Book value per share is computed by dividing common equity by the number of common shares outstanding.

Convertible bonds are usually:

Multiple Choice

• mortgage bonds.

• callable.

• senior bonds.

• participating.

Which of the following statements does not accurately describe the current accounting standards for goodwill?

Multiple Choice

• Goodwill should be tested for impairment on at least an annual basis and in certain conditions between annual dates.

• If the fair value of the reporting unit is greater than its book value there is not a goodwill impairment.

• If the fair value of the reporting unit is less than its book value there will always be a goodwill impairment.

• Goodwill should not be amortized.