1. Which statement is FALSE?

Select one: a. Diluted EPS is never higher than Basic EPS b. Use of the "Treasury Stock Method" determines the effect of convertible bonds on Diluted EPS c. Bond interest expense is the cash interest paid plus the discount amortized that period d. Bond interest expense is the cash interest paid less the premium amortized that period

2. Which statement is TRUE?

Select one:

a. At year-end, a journal entry to increase assets by the estimate of future inventory returns should be made

b. Inventory on consignment should be included in the consignee's inventory count until sold

c. For assurance-type warranties, warranty expense is allocated over the life of the warranty

d. For service-type warranties, warranty revenue is recorded in the year of the sale of the additional warranty

3. In a four-column December proof of cash reconciling Bank to Book, which item would appear as an addition in columns two and four?

Select one:

a. December collection by bank

b. December deposit in transit

c. December service charge

d. December outstanding check