Question
QUESTION 1 Portfolio equity transactions never decrease net income or retained earnings. True False 5 points QUESTION 2 Compensation expense for a noncompensatory plan is
QUESTION 1
Portfolio equity transactions never decrease net income or retained earnings.
True
False
5 points
QUESTION 2
Compensation expense for a noncompensatory plan is recorded at the end of each employee's vesting period.
True
False
5 points
QUESTION 3
On the declaration date, a large stock dividend requires that the overpaid capital account and the common stock account to be distributed be CR.
True
False
5 points
QUESTION 4
The sale of shares in portfolio below its cost generates a loss that reduces the net income of the company but not the retained earnings.
True
False
5 points
QUESTION 5
RSUs (restricted stock units) that require the distribution of common shares are reported as a capital account during the employee's vesting period.
True
False
5 points
QUESTION 6
When computing basic earnings per share, the conversion effect of some potentially diluting values is ignored.
True
False
5 points
QUESTION 7
SARs (stock appreciation rights) that require the distribution of common shares are reported as a debt account during the period of service (vesting period) of the employees.
True
False
5 points
QUESTION 8
The distribution of a previously declared proprietary dividend has no effect on retained earnings at the time of distribution.
True
False
5 points
QUESTION 9
Preferred stock is called preferred because it usually has two preferences. These preferences relate to
Pair value and dividends
The preemptive right and voting rights
Assets at liquidation and dividends.
Dividends and the preemptive right
5 points
QUESTION 10
The right of preferential or privileged subscription (pre-emptive right) of common shareholders is defined as the right
to participate proportionally in corporate assets in the event of a liquidation
to participate proportionally in any new issue of common shares.
for preferred shareholders to receive dividends before common shareholders.
to exclude preferred shareholders from having the right to vote.
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