Earnings per share looks like a simple fraction until somebody mentions convertible bonds. Then the denominator has to absorb shares that do not exist yet, the numerator has to be adjusted for interest that would not have been paid, and any security that would raise the ratio has to be excluded from the calculation altogether. Intermediate Accounting, 9th Edition by Spiceland works through those adjustments carefully, and dilution remains one of the most reliable places to lose marks in the second half of the sequence.
Why this test bank helps
Questions on this material are decided by which adjustment applies rather than by arithmetic. Each item here carries a written rationale naming the rule being tested — when a security is antidilutive, which average is used, on which date the share count changes — and explaining why each alternative fails. Reading those explanations is how a procedure you can follow becomes one you can select correctly when the question is worded unhelpfully and the clock is running.
What’s inside
- Questions following the ninth edition chapter by chapter, in the book’s own order.
- Multiple choice, true/false and short computational items in the proportions a typical paper uses.
- A written rationale under every question, naming the rule that selects the treatment.
- Concentrated practice on revenue, leases, taxes and dilution, where the marks are densest.
- One organized PDF, downloadable as soon as checkout completes.
Topics covered
- The reporting environment — standard setting, the objectives of reporting and the qualitative characteristics.
- Revenue recognition — the five-step model, obligations satisfied over time, and contract costs.
- Receivables and inventory — estimating uncollectible accounts, cost formulas and the retail inventory method.
- Operational assets — acquisition, depreciation and depletion, impairment and subsequent expenditures.
- Investments and debt — classification of securities, bond issuance, effective interest amortization and early extinguishment.
- Leases and pensions — classification criteria, measuring the obligation and the components of pension cost.
- Income taxes — temporary differences, deferred balances, valuation allowances and enacted rate changes.
- Equity and earnings per share — share transactions, dividends, basic and diluted EPS and antidilution.
Who it’s for
Accounting students in an intermediate financial accounting sequence using the ninth edition, including those taking the second term as a standalone unit while revising the first term’s material alongside it.
How to use it (the right way)
Attempt a block closed-book after each chapter and treat any item you answered by elimination as unanswered. For computational items write the schedule out even when the number looks obvious, because the schedule is what the harder version of the same question will require. This is a study aid, to be used in line with your institution’s academic-integrity policy: for preparation and self-testing, never taken into a graded assessment.
Sample question (shows the format — your download contains the full set)
Q. A company has 100,000 weighted average shares outstanding and options on 10,000 shares exercisable at $10. The average market price for the year was $25. How many incremental shares are added to the denominator for diluted earnings per share?
- A. 10,000
- B. 6,000
- C. 4,000
- D. Zero
Answer: B. The treasury stock method assumes the options are exercised and the $100,000 of proceeds is used to buy shares back at the $25 average market price, retiring 4,000 of them. The net addition to the denominator is therefore 6,000. A adds every option share and ignores the assumed repurchase entirely. C is the number of shares bought back rather than the increment. D would be correct only if the options were antidilutive, which happens when the exercise price sits above the average market price — the opposite of these facts.
Edition & format
- Matches: Intermediate Accounting, 9th Edition, by Spiceland (ISBN 9781259722660).
- Format: Digital PDF, delivered instantly after checkout.
- Access: Lifetime — re-download from your account at any time.
Chapter order and problem numbering change between editions of this text. Please confirm the edition and ISBN above match the book your course assigned before you buy.
Frequently asked questions
Which edition is this? The ninth edition, ISBN 9781259722660. Other intermediate accounting titles and editions are listed separately, as their chapters differ.
When do I get the file? Immediately. The link is on the confirmation page the moment payment is processed, and it stays in your account afterwards.
Are explanations included with the answers? Yes. Each question is followed by reasoning covering why the answer is right and why the alternatives are not.
Is a test bank allowed as study material? Used as practice it is an ordinary revision resource. Follow your institution’s academic-integrity policy and never carry it into an assessment.
Browse other titles for this course in Accounting Test Banks.
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