To help you become familiar with the accounting standards, this case is designed to take you to the FASB’s Web site and have you access various publications. Access the FASB’s Web site at http://www.fasb.org. Click on “Pronouncements & EITF Abstracts.”

In this chapter, we discussed earnings per share. For this case, we will use Statement of Financial Accounting Standards No. 128, “Earnings per Share.” Open FASB Statement No. 128.

1. Paragraph 15 discusses the concept of a “control number.” What is the control number used for?
2. In paragraph 27, a quick test for determining whether or not convertible preferred stock is dilutive or antidilutive is discussed. Briefly discuss that quick test.