Question 2

1. What is the difference between equity and liability options?

   		Equity options can be settled for intrinsic value.
   		Equity options increase reported Owners' Equity.
   		Equity options can be used to purchase shares of stock.
   		Equity options can only be used to purchase shares at a set price.

Question 3

1. What effect would antidilutive securities have on EPS if they were exercised?

   		Antidilutive securities don't effect EPS.
   		Antidilutive securities reduce EPS.
   		Antidilutive securities increase EPS.
   		Antidilutive securities can increase or reduce EPS, depending on the nature of the security.