ACCT 312 DeVry Entire Course

Question 5. Question : (TCO 3) According to GAAP, accounting for postretirement benefits other than pensions must
adhere to the
cash basis of accounting.
accrual basis of accounting.
modified accrual basis.
modified cash basis.
Question 6. Question : (TCO 4) Retained earnings represents
earned capital.
cash.
assets.
net assets.
Question 7. Question : (TCO 4) Any dividend that is considered to be a liquidating dividend will
reduce retained earnings.
reduce paid-in capital.
increase paid-in capital.
reduce the common stock account.
Question 8. Question : (TCO 5) The most important accounting objective for executive stock options is
measuring their fair value for balance sheet purposes.
measuring and reporting the amount of compensation expense during the service period.
to disclose increases or decreases in the stock options held at the end of each accounting period.
None of the above
Question 9. Question : (TCO 5) Our company granted options for 2 million shares of its $1 par common stock at the
beginning of the current year. The exercise price is $35 per share, which was also the market value of the stock on the
grant date. The fair value of the options was estimated at $9 per option. If the options have a vesting period of 5 years,
which would be the balance in paid-in-capital stock options three years after the grant date?
A credit of $10.8 million
A credit of $18 million
A debit of $70 million
A debit of $3.6 million
Question 10. Question : (TCO 6) Which of the following is not a potential common stock?
Convertible preferred stock
Convertible bonds