What is the impact on accounts receivable if sales exceed cash collections and what is the impact on accounts payable if cash paid to suppliers exceeds purchases Accounts receivable Accounts payable ①A. Increase Decrease ②B. Increase Increase ③C. Decrease Decrease
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Which of the following statements about dilutive securities is least likely correct
A simple capital structure is one that contains only common stock and antidilutive securities.
B. A complex capital structure is one that contains potentially dilutive securities.
C. A dilutive security is one that will cause earnings per share (EPS) to decrease if it is converted into common stock.
On January 1,2007, Omega Corporation paid $45000 to renew its property insurance for 3 years. What amount of insurance expense should Omega report for the year-ended December 31, 20×7 and what is the balance of Omega’ s prepaid insurance account on December 31,20×8 Insurance expense Prepaid insurance ①A. $15000 $ 30000 ②B. $15000 $15000 ③C. $ 45000 $15000
A. ①
B. ②
C. ③
A software company pays a substantial amount of its compensation expense in the form of stock options. Without these options the company feels it will not be able to keep its key engineers. When adjusting for stock options, the EPS calculation is affected only when the stock price:
A. is less than the exercise price.
B. is greater than the exercise price.
C. is greater than the stock price at the end of the previous year.