Question :
121. Which of the following is/are not true regarding the classification : 1245817
121. Which of the following is/are not true regarding the classification of redeemable preferred shares on the balance sheet? A. The classification of redeemable preferred shares on the balance sheet depends on the conditions for redemption. B. If only the issuing firm has the option to redeem, then the preferred shares are part of its liabilities.C. If the issuing firm must redeem the preferred shares (so-called “mandatory redemption”), either at a specified time or upon a specified condition certain to occur, the issuing firm treats the preferred shares as a liability. D. If the preferred shareholders have the option to require redemption, then the preferred shares appear between liabilities and shareholders’ equity under U.S. GAAP. E. If the preferred shareholders have the option to require redemption, then the preferred shares appear as a liability under IFRS.
122. Which of the following is/are not true regarding the classification of redeemable preferred shares on the balance sheet? A. The classification of redeemable preferred shares on the balance sheet depends on the conditions for redemption. B. If only the issuing firm has the option to redeem, then the preferred shares are part of its shareholders’ equity. C. If the issuing firm must redeem the preferred shares (so-called “mandatory redemption”), either at a specified time or upon a specified condition certain to occur, the issuing firm treats the preferred shares as its shareholders’ equity.D. If the preferred shareholders have the option to require redemption, then the preferred shares appear between liabilities and shareholders’ equity under U.S. GAAP. E. If the preferred shareholders have the option to require redemption, then the preferred shares appear as a liability under IFRS.
123. Which of the following is/are not true regarding the classification of redeemable preferred shares on the balance sheet? A. The classification of redeemable preferred shares on the balance sheet depends on the conditions for redemption. B. If only the issuing firm has the option to redeem, then the preferred shares are part of its shareholders’ equity. C. If the issuing firm must redeem the preferred shares (so-called “mandatory redemption”), either at a specified time or upon a specified condition certain to occur, the issuing firm treats the preferred shares as its shareholders’ equity.D. If the preferred shareholders have the option to require redemption, then the preferred shares appear between liabilities and shareholders’ equity under U.S. GAAP. E. If the preferred shareholders have the option to require redemption, then the preferred shares appear between liabilities and shareholders’ equity under IFRS.
124. Which of the following is/are not true regarding the classification of redeemable preferred shares on the balance sheet? A. The classification of redeemable preferred shares on the balance sheet depends on the conditions for redemption. B. If only the issuing firm has the option to redeem, then the preferred shares are part of its shareholders’ equity. C. If the issuing firm must redeem the preferred shares (so-called “mandatory redemption”), either at a specified time or upon a specified condition certain to occur, the issuing firm treats the preferred shares as its shareholders’ equity.D. If the preferred shareholders have the option to require redemption, then the preferred shares appear as a liability under U.S. GAAP. E. If the preferred shareholders have the option to require redemption, then the preferred shares appear as a liability under IFRS.
125. Regarding employee stock options, which of the following is/are true? A. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate. B. Total compensation cost is the number of options the firm expects to vest times the value per option. C. Firms amortize total compensation cost over the requisite service period, which is the expected period of benefit. D. The requisite service period is usually the period between the grant date and the vesting date. E. all of the above
126. Regarding employee stock options, which of the following is/are not true? A. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate. B. Total compensation cost is the number of options the firm expects to vest times the value per option. C. Firms amortize total compensation cost over the requisite service period, which is the expected period of benefit. D. The requisite service period is usually the period between the grant date and the vesting date. E. Firms typically remeasure most types of stock options after the initial grant date.
127. Regarding employee stock options, which of the following is/are not true? A. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate. B. Total compensation cost is the number of options the firm expects to vest times the value per option. C. Firms amortize total compensation cost over the requisite service period, which is the expected period of benefit. D. The requisite service period is usually the period between the grant date and the redemption date. E. Firms do not typically remeasure most types of stock options after the initial grant date.
128. Regarding employee stock options, which of the following is/are true? A. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate. B. Total compensation cost is the number of options the firm expects to vest times the value per option. C. Firms amortize total compensation cost over the requisite service period, which is the expected period of benefit. D. The requisite service period is usually the period between the grant date and the vesting date. E. Firms do not typically remeasure most types of stock options after the initial grant date.
129. Regarding employee stock options, which of the following is/are true? A. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate. B. Total compensation cost is the number of options the firm expects to vest times the expected value per option at the date of redemption.C. Firms amortize this total cost over the requisite service period, which is the expected period of benefit. D. The requisite service period is usually the period between the grant date and the vesting date. E. Firms do not typically remeasure most types of stock options after the initial grant date.
130. Concerning treasury shares, which of the following is/are true? A. Firms recognize no gain or loss from purchasing their own shares or reissuing previously purchased shares. B. Differences between the purchase and reissue price are not earnings transactions but affect contributed capital accounts. C. Firms account for the purchase of treasury shares using either the cost method or the par value method or the constructive retirement method. D. The methods firms use to account for the purchase of treasury shares differ in terms of the shareholders’ equity accounts affected, but all result in an equal reduction in total shareholders’ equity when firms purchase their own shares.E. all of the above
