ACC 432 final exam new
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Description
1) Proceeds from an issue of debt securities having stock warrants should NOT be allocated between debt and equity features when
A.
the allocation would result in a discount on the debt security.
B.
the warrants issued with the debt securities are nondetachable.
C.
exercise of the warrants within the next few fiscal periods seems remote.
D.
the market value of the warrants is NOT readily available.
2) The conversion of preferred stock may be recorded by the
A.
market value method.
B.
par value method.
C.
book value method.
D.
incremental method.
3) The conversion of preferred stock into common stock requires that any excess of the par value of the common shares issued over the carrying amount of the preferred being converted should be
A.
treated as a prior period adjustment.
B....