Reference no: EM131056182
1. The following requires separate earnings per share disclosure
nonrecurring items.
income items.
earning items.
dividend payments.
2. In computing earnings per share, preferred dividends are subtracted from
net income.
gross income.
net earnings.
gross earnings.
3. What is the effect of the exercise of stock options?
They generate cash to the issuing firm, thereby increasing profit per share.
They are an expense at the time of exercise.
This lowers net income.
They increase debt and lower borrowing capacity but have no effect on profit.
They increase the numbers of shares outstanding.
4. What is important to a firm's long-term debt paying ability?
Expenses
Capital assets
Long-term debt
Profitability
5. Which is more desirable for a firm, in regards to interest over the years?
A steady coverage of interest
A low coverage of interest
A high stable coverage of interest
Not a significant determinant
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