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Question
Stock options are granted to the employees of Young Company on March 10, 2010. The employees must wait until March 10, 2014 to exercise the options. The four-year waiting period is the
A. expected life of the options.
B. grant period.
C. vesting period.
D. holding period
Answer
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Related questions
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Briefly explain the forces behind the rise of IFRS.
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IFRS frequently
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B. permit only one accounting treatment for similar business transactions and events to promote comparability.
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D. follow a more generalized overview approach than do U.S. GAAP counterpart standards.
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B. comparable.
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Q:
The amount reported as net cash provided by financing activities is
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Q:
The Black Corporation has provided the following information:
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Increase in prepaid expenses: $14,000
Amortization of discount on bonds payable: $10,000
Decrease in accounts payable: $20,000
Increase in inventory: $21,000
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Q:
Which of the following correctly describes U.S. GAAP accounting for convertible bonds and the implication of that requirement?
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B. Total owners' equity increases $790,000 if the market value method of recording the conversion is used.
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Over the vesting period for employee stock options, current GAAP requires that the entire compensation expense be recognized
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Q:
The following information has been provided to you by the Smith Corporation for the year ending December 31, 2011:
The numerator used in the calculation of basic earnings per share was $797,000.
Cash dividends were paid to the common shareholders.
8% convertible bonds with a par value of $1,000,000 were issued on July 1, 2011.
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Q:
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550,000 shares of common stock were outstanding on January 1, 2011.
Bonds convertible into 50,000 shares of common stock were issued on July 1, 2011; the bonds have been determined to be dilutive.
36,000 shares of common stock were issued on November 1, 2011.
24,000 shares of common stock were purchased on December 1, 2011.
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Q:
A company that has earnings in Year 2 equal to the earnings of Year 1 can improve its Year 2 reported earnings per share by
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Q:
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C. The company might have convertible bonds outstanding.
D. The company must have participating preferred stock outstanding.
Q:
Which of the following is not indicative of a complex capital structure?
A. Outstanding convertible bonds.
B. Outstanding convertible preferred stock.
C. Outstanding cumulative preferred stock.
D. Outstanding stock options.
Q:
Assuming that the preferred stock is cumulative, and that there are no dividends in arrears, what is the maximum dividend that may be distributed to common shareholders at December 31, 2012?
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Q:
What is the owners' equity balance on December 31, 2012?
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B. $8,738,350
C. $8,865,850
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What is the retained earnings balance on December 31, 2012?
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Q:
Which of the following does not accurately describe the proprietary view of the firm?
A. Its focus is on the firm's net assets.
B. It is the prevailing view of GAAP.
C. Its focus is on owners' equity.
D. Whether creditors or shareholders provided the firm's assets is irrelevant.
Q:
By using the book value method to record the conversion of convertible bonds, managers are able to protect themselves from recording conversion losses.
Q:
SFAS No. 123 required companies to use the fair value approach when determining compensation expense pertaining to stock options.