10. Which of the following statements is incorrect in relation to presentation of earnings per share?I. An entity shall present on the face of the income statement basic and diluted earnings per share for income fromcontinuing operations.II. An entity that reports a discontinued operation is not required to disclose the basic and diluted earnings per sharefor the discontinued operation either on the face of the income statement or in the notes.a. I onlyb. II onlyc. Both I and IId. Neither I nor II11. It is a financial instrument that gives the holder the right to purchase ordinary sharesa. Warrant or optionb. Debt or equity instrument convertible into ordinary sharec. Employee plat that allows employees to receive ordinary shares as part of their remunerationd. Contractual arrangement requiring issuance of ordinary shares upon the satisfaction of certain conditions12. Potential ordinary shares include all of the following excepta. Financial liabilities or equity instrument, including preference shares, that are not convertible into ordinary sharesb. Share warrantsc. Share options or employee plans that allow employees to receive ordinary shares as part of their remunerationd. Shares which would be issued upon the satisfaction of certain conditions resulting from contractual arrangements,such as purchase of a business

10. Which of the following statements is incorrect in relation to presentation of earnings per share? I. An entity shall present on the face of the income statement basic and diluted earnings per share for income from continuing operations. II. An entity that reports a discontinued operation is not required to disclose the basic and diluted earnings per share for the discontinued operation either on the face of the income statement or in the notes. a. I only b. Il only c. Both I and II d. Neither I nor II

10. Which of the following statements is incorrect in relation to presentation of earnings per share? I. An entity shall present on the face of the income statement basic and diluted earnings per share for income from continuing operations. II. An entity that reports a discontinued operation is not required to disclose the basic and diluted earnings per share for the discontinued operation either on the face of the income statement or in the notes. a. I only b. Il only c. Both I and II d. Neither I nor II

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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WHICH STATEMENT IS FALSE?A. If the net income of prior period is overstated because of the change in accounting policy, the effect is deducted from the beginning retained earnings.B. Equity is also the net assets.C. Prior period errors are shown as adjustment of the ending balance of retained earnings. If the net income of the prior period is overstated, the amount of the error uis deducted from retained earnings.D. In the conversion of preference chares into ordinary shares, if the total par or stated value of the ordinary shares is more than the original issue of the preference shares, the difference is charged to retained earnings.
Which of the statements below is false? If the net income of prior period is overstated because of the change in accounting policy, the effect is (A) deducted from the beginning retained earnings. Prior period errors are shown as adjustment of the ending balance of retained earnings. If the net income of (B) the prior period is overstated, the amount of the error uis deducted from retained earnings. Equity is also the net assets. In the conversion of preference chares into ordinary shares, if the total par or stated value of the ordinary D shares is more than the original issue of the preference shares, the difference is charged to retained earnings.
23. What is the process of incorporating an item in the statement of financial position or statement of profit or loss and other comprehensive income, when it meets the definition criteria? a. None of the options b. De-recognition c. Recognition d. Measurement
5. true? Which of the following statements concerning the income statement is not It can be called the profit and loss statement The heading must indicate the length of time the report covers It shows the change in the entity's cash balance for the period It is divided into two sections, income and equity C and D are both not true ABCDE A. B. C. D. E.
Earnings per share should be reported separately for a).depreciable assets. b).discontinued operations. c).an error in applying generally accepted accounting principles. d).changes from one generally accepted accounting principle to another.
1) Find the code that supports this statement under FASB (ex: 310-52-22-1) "Gain contingencies are not recognized in financial statements" 2) What is the objective of reporting basic earnings per share? Please make sure to cite your answer from the FARS Codification using a complete citation. For example: 123-45-67-8a-c.
A restriction on retained earningsa. Reduces retained earnings available for the declaration of dividends. b. Can be reported by an entry appropriating retained earnings. c. Has no effect on total retained earnings. d. All of the choices are correct.
TRUE OR FALSE 1. Appropriation for retained earnings do not change both on the total amount of shareholder’s equity and total retained earnings. 2. Appropriated Retained Earnings account is created for the purpose of insuring the payment of dividends. 3. Appropriated Retained Earnings does not mean that assets are segregated for a specific purpose. 4. The only proper way to eliminate an appropriation of retained earnings after it has served its purpose is to reclassify/revert to the unappropriated retained earnings
Which of the following statements is incorrect regarding provisions of PAS 1? a. An entity is required t present separate sections of profit or loss and other comprehensive income b. Presenting an income statement or statement of profit or loss in addition to a statement of other comprehensive income is permitted when an entity elects to use "two-statement" presentation c. Presenting an income statement or statement of profit or loss alone without a statement of other comprehensive income items is allowed d. Presenting comprehensive income as a note disclosure only is prohibited
17. Which statement is incorrect regarding presentation of basic and diluted EPS? a. Earnings per share is presented for every period for which a statement of comprehensive income is presented. b. Ir dnuted earnings per share is reported for at least one period, it shall be reported for all periods presented, even if it equals basic earnings per share. C. If basic and diluted earnings per share are equal, dual presentation can be accomplished in one line in the statement of comprehensive income. d. Basic and diluted EPS need not be presented if the amounts are negative. 18. If an entity presents items of profit or loss in a separate statement of profit or loss, it presents earnings per share a. Only in the statement of profit or loss. b. Only in the statement of profit or loss and other comprehensive income. c. Only in the statement of changes in equity. d. Only in the notes to the financial statements. 19. When an entity issues both consolidated and separate financial statements, the…
31. The total retained earnings balance typically is not affected by * a. Net Income b. A prior period error c. Dividends paid d. Restrictions
Earnings Per Share must be disclosed for Income from Continuing Operations, Discontinued Operations and Net Income for both Basic Earning Per Share and for Diluted Earnings Per Share. • True O False