Comprehended Intermediate Accounting Ii Units 4-6 Questions And Answers

With respect to the computation of earnings per share, which of the following would most indicative of a simple capital structure? A. common stock, preferred stock, and convertible securities outstanding in lots of even thousands. B. earnings derived from one primary line of business. C. ownership interest consisting solely of common stock D. none of these {Ans: C. ownership interest consisting solely of common stock}In determining diluted earnings per share, dividends on non convertible cumulative preferred stock should be A. disregarded. B. added back to net income whether declared or not. C. deducted from net income only if declared. D. deducted from net income whether declared or not. {Ans: D. deducted from net income whether declared or not.}Unrealized holding gains or losses which are recognized in income are from securities classified as: A. held-to-maturity. B. available-for-sale. C. trading. D. none of these. {Ans: C. trading.}Kiner, Inc. had 40,000 shares of treasury stock ($10 par value) at December 31, 2009, which it acquired at $11 per share. On June 4, 2010, Kiner issues 20,000 treasury shares to employees who exercied options under Kiner's employee stock option plan. The market value per share was $13 at December 13, 2009,