FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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When computing diluted earnings per share (EPS), convertible bonds are:
A. ignored.
B. assumed converted whether they are dilutive or antidilutive.
C. assumed converted only if they are antidilutive.
D. assumed converted only if they are dilutive.
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- 6. This is a financial security that evidences your right to be paid with interest and principal during specified due dates? a. Bonds b. Preferred shares c. Common shares d. Option to buy bonds e. None of the abovearrow_forwardFor investment in equity securities carried as FVOCI under PFRS 9, the difference between the carrying value of the investment and its related cumulative unrealized gain or loss-OCI is A. its unrealized gain or loss reported as a component of OCI for the period. B. its unrealized gain or loss reported under profit or loss for the period. C. its initial cost D. Its amortized costarrow_forwardWhich of the following is not a long term source of capital? a. Preferred stock b. Common stock c. Current liabilities. d. Long-term debtarrow_forward
- What cause shifts for supply of bonds? Explain by the help of graphsarrow_forwardWhich statement is FALSE regarding bonds?Select one:The pay back their face value within their maturity.They can be traded on secondary markets. Entitles its holder for cash inflows.When issued they increase the equity of the firm.arrow_forwardWhich of the following may affect yields (interest rates) on debt securities? default risk premium liquidity premium tax adjustment default risk premium AND liquidity premium default risk premium AND liquidity premium AND tax adjustmentarrow_forward
- If the carrying amount of bonds redeemed is more than the redemption price, the difference is recorded as a a. discount. b. premium. c. gain. loss. O d.arrow_forward1. Can issue characteristics (such as coupon and call features) affect the yield and price behavior of bonds? Explain.arrow_forward1. Investments in debt securities are classified for accounting purposes as: A. Financial asset at amortized cost (AC), fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVPL) B. Financial asset at amortized cost (AC) or fair value through other comprehensive income (FVOCI) only C. Trading, Available-for-Sale (AFS) or Held-to-Maturity (HTM) D. Available-for-Sale (AFS) or Held-to-Maturity (HTM) onlyarrow_forward
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