Financial 1

Question 1

When calculating net income, sale discounts are subtracted from NET ________ and Gain on sold segment has tax assessed separately from continuing operations

Answer 1

SALES

Question 2

Comprehensive income includes all changes in equity from

Answer 2

NON-OWNER SOURCES (TRANSACTIONS FROM COMMON STOCK ARE NOT INCLUDED)

Question 3

Income from continuing operations is recorded ____ of tax

Answer 3

NET

Question 4

Basic diluted EPS formula = Income available to common ___________ / ________ average number of shares

Answer 4

SHAREHOLDERS; WEIGHTED

Question 5

Earnings per share = NI - _________ _______ / weighted shares outstanding

Answer 5

PREFERRED DIVIDENDS

Question 6

Basic earnings per share includes dilutive shares in it’s calculation (T or F)

Answer 6

FALSE

Question 7

when calculating interest expense for diluted EPS formula, add ___________

Answer 7

Amortization

Question 8

Under the cost method of accounting for APIC, reissuance of TS, is accounted for with

Question 9

Under the Cost method shares aquired and sold at a lower price could ____________ Retained earnings if there isn’t enough __________

Answer 9

LOWER; APIC

Question 10

Gains and losses on treasury stock transactions are recorded in Net Income (T or F)

Answer 10

FALSE.

Question 11

in determining earnings per share, interest expense on convertible debt should be __________ to net income for diluted eps and ________ for basic earnings per share

Answer 11

ADDED; IGNORED

Question 12

When computing the weighted average of common shares outstandings for basic eps convertible shares are _________

Answer 12

IGNORED