Exam 9: Long-Lived Assets

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.

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

When computing diluted earnings per share,convertible securities are:

ABC has 20,000 common shares outstanding throughout the year.It also had 20,000,6 percent preferred shares,par $20,(cumulative and nonconvertible)outstanding throughout the year.Net income was $300,000.The earnings per share amount would be: (Rounded to the nearest cent.)

Basic earnings per share represent the amount of earnings attributable to:

A company earned $20,000 in 2014 and had 20,000 common shares outstanding the entire year.The following four potentially dilutive securities were also outstanding the entire year.The numerator and denominator of the D/A ratios are as indicated. What is the diluted EPS? (Rounded to the nearest cent)

What would be the effect on book value per share and earnings per share if the corporation purchased its own shares in the open market at a price greater than book value per share?

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

In computing EPS,convertible preferred shares may increase the number of shares outstanding:

If net income is $10,000 and there were 8,000 common shares issued and outstanding the entire year,and $100,000 of noncumulative,nonconvertible 6% $100 par preferred shares outstanding the entire year,what is EPS if no dividends were declared during the year?

For purposes of computing the weighted-average number of shares outstanding during the year,a mid-year event that must be treated as occurring at the beginning of the year is the:

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

On January 2,2014,CBA issued at par $10,000 of 8 percent bonds convertible into 2,000 of CBA's common shares.No bonds were converted during 2014.Throughout 2014,CBA had 2,000 common shares outstanding.CBA's net income after tax was $1,000.CBA's income tax rate is 50 percent.No potentially dilutive securities other than the convertible bonds were outstanding during 2014.CBA's basic EPS and diluted EPS for 2014 would be:

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.