Long-lived Assets

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The Framework for Financial Reporting
Accounting Judgements
Statements of Income and Comprehensive Income
Statements of Financial Position and Changes in Equity; Disclosure Notes
The Statement of Cash Flows
Revenue Recognition
Financial Assets: Cash and Receivables
Cost-Based Inventories and Cost of Sales
Long-Lived Assets
Depreciation, Amortization, and Impairment
Financial Instruments: Investments in Bonds and Equity Securities

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Question 1

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True/False

An anti-dilutive effect means that EPS is decreased as a result.

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Question 2

Free

True/False

Only firms with a complex capital structure must compute diluted EPS.

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Question 3

Free

True/False

Stock dividend and stock splits are treated as though they had been in effect for the entire period.

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Question 4

Free

True/False

Convertible securities and options are always included in the calculation of diluted EPS.

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Question 5

Free

True/False

Reporting earnings per share for public companies is optional; however,its presentation is strongly recommended.

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Question 6

True/False

When a midyear stock dividend increases the number of common shares outstanding for the period,the new shares resulting from the dividend are weighted by one-half a year for purposes of computing EPS.

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Question 7

True/False

Earnings per share refer to the amount of earnings attributable to each share of common and preferred stock.

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Question 8

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When a midyear stock dividend increases the number of common shares outstanding for the period,the average number of common shares outstanding is computed as if the stock dividend was distributed at the beginning of the year.

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Question 9

True/False

The treasury stock method is only used for options,and only the denominator is affected.

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Question 10

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Provided that the conditions for share issuance are met at the end of a period and the date of the contingency period has not expired,contingently issuable shares will be included in EPS calculations.

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Question 11

True/False

For purposes of computing the average number of common shares outstanding,stock dividends are treated in the same manner as stock splits.

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Question 12

True/False

Nonconvertible,cumulative preferred shares affect the computation of EPS (for simple capital structure),basic EPS and diluted EPS.

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Question 13

True/False

A simple capital structure refers to a shareholders' equity section which only has common shares and no potentially dilutive securities that,upon their conversion or exercise in the aggregate,would dilute earnings per share.

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Question 14

True/False

A simple capital structure is one in which the shareholders' equity consists only of common shares or includes no potentially dilutive securities.

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Question 15

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In some cases,diluted earnings per share amounts may be the same as the basic earnings per share amounts.

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Question 16

True/False

Anti-dilution must be considered only with complex capital structures.

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Question 17

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The basic EPS can be compared with basic EPS numbers from the past years to see whether the company is earning more or less for its common shareholders.

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Question 18

True/False

The diluted EPS does not have to be disclosed in the financial statements.

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Question 19

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The diluted EPS should be disclosed in the financial statements only if it is materially different from basic EPS.

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Question 20

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Basic EPS is an historical amount.

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