Reference no: EM132785729

Problem 1: Which of the following statements is incorrect concerning earnings per share.

A. During a loss period, the amount of loss attributed to each share of common stock should be computed.

B. During periods when all income is paid out as dividends, earnings per share and dividends per share under a simple capital structure would be identical.

C. During a period, changes in stock issued or reacquired by a company may affect earnings per share.

D. Under a simple capital structure, no adjustment to shares outstanding is necessary for a stock split on the last day of the fiscal period.

Problem 2: According to IAS 38, which of the following may be recognized as cost of intangible asset?

A. Research costs incurred in self-generating an intangible asset

B. Costs of an internally generated customer lists

C. Purchase cost of an externally acquired publishing title

D. Abnormal amount of wasted labor in self-generating an intangible asset