Work Assignment $7$

This week, you are asked to help Irain accountants who have just graduated and joined the firm. These new accountants have sent in their questions, and you are to answer them. Please explain all of the following clearly and simply for them:

What are contingenlly issuable shares, and how do we account for them?

What is the difference between a complex and a simple capital structure?

What happens to eamings per share if a company purchases and holds a large amount of treasury stock?

Why is preferred stock referred to as a hybrid between a liability and equity?

What is accumulated other comprehensive income? What can be included there?

What is a defined benefit pension plan? Contrast that with a defined contribution pension plan.

When discussing GAAP for income tames, what are permanent differences?

Explain what a valuation allowance is for deferred tax assets.