Question : 16.              Which of the following statements false about earnings per : 1370111

16.              Which of the following statements is false about earnings per share:

A)is a required disclosure on the face of the income statement

B)is a common size measure of a company’s earnings performance

C)is the amount that each stockholder will receive as dividends that period

D)reflects the amount of a company’s earnings belonging to each shareholder on a per share basis

17.              In calculating earnings per share, the numerator is:

A)income from continuing operations

B)net income plus common dividends

C)net income minus preferred dividends

D)income before taxes plus preferred dividends

18.              Alamo, Inc. had 480,000 shares of common stock outstanding on January 1, 2010.  An additional 150,000 shares were issued on May 1, 2010, and 60,000 shares were repurchased on October 1, 2010. The weighted average number of shares outstanding during 2010 was:

A)475,000

B)565,000

C)570,000

D)630,000

19.              Jackson, Inc. had 360,000 shares of common stock outstanding on January 1, 2010 and issued 60,000 additional shares on July 1, 2010. There was no preferred stock. If net income for the year ended December 31, 2010 was $1,072,500, the earnings per share were:

A)$2.23

B)$2.55

C)$2.75

D)$2.98

20.              Advance Systems, Inc. had 840,000 shares of common stock outstanding on January 1, 2010, and repurchased 75,000 shares on June 1, 2010. Net income for the year ended December 31, 2010, was $2,662,625, and preferred stock dividends for the year amounted to $35,000. The earnings per share for 2010 were:

A)$3.30

B)$3.34

C)$3.48

D)$3.53

21.              Under full-absorption costing,

A)companies can increase income by increasing the number of units produced

B)all product and period costs are included in cost of goods sold

C)only costs that vary per unit are included in cost of goods sold

D)only direct material costs are included in cost of goods sold

22.              Under unit-variable costing,

A)companies can increase income by increasing the number of units produced

B)all product and period costs are included in cost of goods sold

C)only costs that vary per unit are included in cost of goods sold

D)only direct material costs are included in cost of goods sold

23.              Under throughput costing,

A)companies can increase income by increasing the number of units produced

B)all product and period costs are included in cost of goods sold

C)only costs that vary per unit are included in cost of goods sold

D)only direct material costs are included in cost of goods sold

24.              Product line income reports:

A)are a type of current cost income statement

B)show the costs of each division on a full-costing basis

C)make it more difficult to evaluate the performance of a division manager

D)include only those costs controlled by a given product-line or division manager

Use the following to answer questions 25-28:

Kaiser Corporation sold its Telecommunications Division during 2010. The company’s accountants determined that the division earned $850,000 of pre-tax income during 2008 prior to disposal. The sale resulted in a $370,000 loss before taxes.  Kaiser’s income from continuing operations for 2008 amounted to $4,138,000. The company’s effective tax rate is 35%.

25.              The amount of extraordinary items that would appear on the 2010 income statement of Kaiser Corporation is:

A)$0

B)$312,000

C)$552,500

D)$850,000