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How convertible bonds that are dilutive should be

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Reference no: EM132493207

Question 1: The purchase of its own common stock by a company (treasury stock) will result in:

a. a decrease in one asset account and an increase in another asset account.

b. a decrease in assets and a decrease in liabilities

c. a decrease in assets and a decrease in stockholders' equity

d. no net changes in assets, liabilities or stockholders' equity

Question 2: Journal entries for cash dividends are required on the:

a. declaration date and the record date.

b. record date and payment date.

c. declaration date, record date and payment date.

d. declaration date and payment date.

Question 3: In computing earnings per share, interest expense, net of applicable income taxes, on convertible bonds that are dilutive should be:

a. added back to net income for diluted earnings per share and ignored for basic earnings per share.

b. added back to net income for both diluted and basic earnings per share.

c. deducted from net income for diluted earnings per share and ignored for basic earnings per share.

d. deducted from net income for both diluted and basic earnings per share.

Reference no: EM132493207

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