103 the denominator in the earnings per share calculation is the a total number of p 4305892

103 the denominator in the earnings per share calculation is the a total number of p 4305892

103) The denominator in the earnings per share calculation is the:

A) total number of preferred and common shares outstanding at the end of the period

B) common shares outstanding at the end of the period

C) weighted-average number of common shares outstanding during the period

D) weighted-average number of common and preferred shares outstanding during the period

104) Morrison Manufacturing Corporation had 30,000 common shares outstanding at January 1, 2010. During 2010, Morrison issued an additional 25,000 shares on February 1, and another 20,000 shares on May 1. If Morrison's net income was $916,800, the company's earnings per share reported on the 2010 income statement will be:

A) $12.22

B) $13.84

C) $17.30

D) $20.00

105) Net income for Malt Corporation for 2010 is $426,800. Malt issued 17,000 common shares in January of 2010. On November 1 of 2010, Malt Corporation reacquired and cancelled 3100 of its common shares. No other common shares transactions occurred in 2010. Malt Corporation issued 2,000 shares of $2, cumulative preferred shares in February 2010, all currently issued and outstanding. What is earnings per share?

A) $25.89

B) $25.26

C) $25.49

D) $25.65

106) Clarke Corporation had net income of $365,000, paid its required preferred dividend of $17,500 and had no other share transactions during the year. If the weighted-average number of common shares outstanding during the year is 69,500, the earnings per share is:

A) $5.50

B) $5.00

C) $5.25

D) $10.00

107) An error on the 2008 income statement is discovered in 2010. The adjustment to correct the error will appear on the:

A) 2010 income statement

B) 2010 statement of retained earnings

C) 2008 income statement

D) 2008 statement of retained earnings

108) A change in accounting policy should be:

A) applied prospectively, prior periods should be restated, and the facts should be disclosed in the notes

B) applied retrospectively, prior periods should be restated, and the facts should be disclosed in the notes

C) requires note disclosure only

D) does not require any special treatment

109) The declaration of a 2-for-1 stock split appears on which financial statement?

A) income statement

B) balance sheet

C) statement of retained earnings

D) does not appear on any financial statement

110) The payment of a cash dividend to shareholders appears on which financial statement?

A) income statement

B) balance sheet

C) statement of retained earnings

D) either the balance sheet or the income statement

111) The declaration of a common stock dividend will appear on which of the following financial statements?

A) income statement

B) balance sheet

C) statement of retained earnings

D) either the balance sheet or the income statement

112) If there has been a stock split during the the year, which of the following statements is true?

A) When calculating the weighted average number of shares, it is not necessary to restate the number of shares outstanding as if the stock split had occurred at the beginning of the year.

B) When calculating the weighted average number of shares, it is necessary to restate the number of shares outstanding as if the stock split had occurred at the beginning of the year.

C) When calculating the weighted average number of shares, it is necessary to ignore the effect of the stock split.

D) When calculating the weighted average number of shares, it is necessary to restate the number of shares outstanding as if the stock split had occurred from the day of incorporation.

113) Which of the following is a key difference between income statements prepared under international financial reporting standards (IFRS) and GAAP for private enterprises?

A) IFRS requires EPS information to be disclosed on the income statement whereas GAAP for private enterprises does not.

B) IFRS does not require EPS information to be disclosed on the income statement whereas GAAP for private enterprises does.

C) IFRS recommends disclosure of EPS information on the income statement whereas GAAP for private enterprises requires it.

D) IFRS requires more detailed EPS information on the income statement than does GAAP for private enterprises.

 

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