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ACC 423 Week 1 Complete
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DQ1.Why do companies offer stock options? What is the experience of either your organization or an organization that you are familiar with when it comes to stock option compensation? Should stock option compensation be included as an expense when calculating an organization’s net income? Explain why or why not. If so, how should the amount of expense be calculated?
DQ2.What are the differences between basic and diluted earnings per share? What are the differences between the numerator and the denominator in the basic and diluted earnings per share calculations? What actions can an organization take in order to improve their earnings per share? What is the experience of either your organization or an organization that you are familiar with when it comes to any of these actions? As an investor, do you evaluate a company as a potential investment using basic or diluted earnings per share? Explain why.
Weekly Summary
Provide a weekly summary of what you learned.
Individual Assignment - Owners’ Equity Paper
Resources: Intermediate Accounting and Electronic Reserve Readings
Prepare a 700- to 1,050-word response to the following questions:
• Why is it important to keep paid-in capital separate from earned capital?
• As an investor, is paid-in capital or earned capital more important? Explain why.
• As an investor, are basic or diluted earnings per share more important? Explain why.
Format your paper consistent with APA guidelines.
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