The Following Information Is Available for Bradshaw Corporation and Newell

question 100

Multiple Choice

The following information is available for Bradshaw Corporation and Newell Corporation: Based on the information for both Bradshaw and Newell over the two-year period, the earnings per share calculations (rounded to two decimals) indicate that

• A) Bradshaw is seeing a greater performance improvement than Newell.
• B) the earnings available to common stockholders is decreasing for Newell and increasing for Bradshaw.
• C) the earnings per share calculations for both companies assume that changes in shares between 2013 and 2014 occur in the middle of the year.
• D) Newell is more financially stable than Bradshaw.

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Definitions:

Asset Accounts

Accounts on a balance sheet representing resources owned or controlled by a company with future economic value.

Liability Accounts

Accounts that represent amounts owed to creditors or bills that must be paid in the future, contributing to a company’s liabilities on the balance sheet.

Post-closing Trial Balance

A list of all company accounts that remain after adjusting and closing entries are made, used to ensure debits equal credits.

Trial Balance

A summary listing of the titles and balances of accounts in the ledger.