assumed conversion of debentures outstanding The amount of cash dividends declared on ordinary shares The required annual dividends on cumulative preference shares The weighted average number of ordinary shares outstanding

assumed conversion of debentures outstanding The amount of cash dividends declared on ordinary shares The required annual dividends on cumulative preference shares The weighted average number of ordinary shares outstanding

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 8MC: When treasury stock is purchased for cash at more than its par value, what is the effect on total...

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Question

#33

In calculating diluted earnings per share, which of the following should not be considered?

Group of answer choices

The number of ordinary shares resulting from the assumed conversion of debentures outstanding

The amount of cash dividends declared on ordinary shares

The required annual dividends on cumulative preference shares

The weighted average number of ordinary shares outstanding

Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.

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#5 In computing book value per share, which of these directly affect the excess over par column? Group of answer choices Both assumed retirement of treasury shares and assumed issuance of subscribed shares Assumed issuance of subscribed shares Either assumed retirement of treasury shares or assumed issuance of subscribed shares Assumed retirement of treasury shares
Question 1 When calculating the number of shares for diluted earnings per share: Select all that apply. The number of dilutive potential ordinary shares that must be included in the year-to-date period calculation is the weighted average number of the dilutive potential ordinary shares included in each interim dilutive earnings per share computation. The number of ordinary shares shall be the weighted average number of ordinary shares as calculated for basic earnings per share plus the weighted average number of ordinary shares that would be issued on the conversion of all dilutive potential ordinary shares. Dilutive potential ordinary shares (e.g., convertible securities, warrants, share options and contingently issuable shares) are deemed to have been converted, exercised or issued into ordinary shares at the end of the current reporting period. Dilutive potential ordinary shares shall be determined independently for each period presented.
question 17 choose the correct answer from the choices
When computing the basic earnings per share in a structure where there are cumulative preference shares, the net income to ordinary shares is equal to the actual net income of the company a. Add current dividend for preference shares whether declared or not b. Less current dividend for preference shares whether declared or not c. Less current dividend for preference shares only when declared d. Less current and previous dividend for preference shares declared or not e. Add current dividend for preference shares only when declared
help
When treasury stock is purchased for cash at more than its par value, what is the effect on total shareholders equity under each of the following methods?
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In applying the treasury shares (i.e., cash in/cash out) method to determine the dilutive effect of shares, options and warrants, the proceeds assumed to be received upon exercise of the options and warrants Select one: a. are used to calculate the number of common shares repurchased at the average market price, when calculating diluted earnings per share. b. are added, net of tax, to the numerator of the calculation for diluted earnings per share. c. are disregarded in the calculation of earnings per share if the exercise price of the options and warrants is less than the ending market price of common shares. d. are deducted from the income available to common share holders. e. None of the above.
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