Reference no: EM132765962

Problem 1: In computing the weighted-average number of shares outstanding during the year, which of the following midyear events must be treated as if it had occurred at the beginning of the year?

a) Declaration and distribution of stock dividend.

b) Purchase of treasury stock.

c) Sale of additional common stock.

d) Sale of preferred convertible stock.

Problem 2: An example of an item which is not a liability is

a) The portion of a long-term debt which is due within one year.

b) Accrued estimated warranty costs.

c) Advances from customers on contracts.

d) Dividends payable in the form of stock.