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Financial Reporting

Business

Quiz 19 :

Earnings Per Share

Quiz 19 :

Earnings Per Share

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A company issues bonus shares for no consideration on 1 August 2021. For the reporting period ended 30 June 2022, the calculation of:
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Multiple Choice
Answer:

Answer:

D

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Earnings per share disclosed by reporting entities have limitations because of the: I. Different accounting methods that can be used in the determination of profit. II. Different amounts of profit depending on the size of the entity. III. Different numbers of shareholders depending on the size of the entity. IV. Ability of an entity to change the number of shares used in the denominator.
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Multiple Choice
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Answer:

A

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The basic earnings per share and diluted earnings per share ratios must be presented in an entity's:
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Multiple Choice
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Answer:

C

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Margaret Ltd determined its profit attributable to ordinary shareholders for the reporting period ended 30 June 2022 as $840 000. The number of ordinary shares on issue up to 31 October 2022 was 50 000. Margaret Ltd announced a two-for-one bonus issue of shares effective for each ordinary share outstanding at 31 October 2022. Basic earnings per share at 30 June 2023 is:
Multiple Choice
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Earnings per share is calculated by:
Multiple Choice
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For the purposes of calculating diluted earnings per share, an entity shall adjust the profit attributable to ordinary shareholders by the after-tax effect of the following item(s) related to dilutive potential ordinary shares:
Multiple Choice
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Any errors or adjustments resulting from changes in accounting policies that are accounted for retrospectively requires:
Multiple Choice
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Murray Ltd determined its profit attributable to ordinary shareholders for the reporting period ended 30 June 2022 as $630 000. The average market price of the entity's shares during the period is $3.00 per share. The weighted average number of ordinary shares on issue during the period is 100 000. The weighted average number of shares under share options arrangements during the year is 20 000 and the exercise price of shares under option is $1.50. Murray Ltd's basic earnings per share at 30 June 2022 is:
Multiple Choice
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AASB 133 applies to the computation and presentation of earnings per share by:
Multiple Choice
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The number of shares used in the calculation of earnings per share is:
Multiple Choice
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If the entity has a discontinued operation, then it must also calculate and disclose the:
Multiple Choice
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Paragraphs 70-73 of AASB 133 prescribe various disclosures relating to earnings per share. The disclosures include: I. The amounts used as the numerators (earnings) in the ratios. II. The number of ordinary shares outstanding at the end of the financial year. III. The weighted average number of ordinary shares used as the denominator in the ratios. IV. A reconciliation of the earnings amounts to the profit or loss attributable to the parent entity. for the period including the individual effect of each class of instruments that affects earnings per share.
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Under AASB 133, if an entity presents both consolidated and separate financial statements, the necessary disclosures need only be determined on the basis of:
Multiple Choice
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On 1 January 2021, the beginning of the reporting period, Jupiter Ltd has 50 000 ordinary shares on issue. On 30 June 2021, Jupiter Ltd issued a further 20 000 ordinary shares for cash. On 1 November 2021, Jupiter Ltd repurchased 2 400 shares at fair value in a market transaction. The weighted average number of shares for use in the earnings per share calculation is:
Multiple Choice
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On 1 July 2021, the beginning of the reporting period, Arthur Ltd has 40 000 ordinary shares on issue. On 1 April 2022, Arthur Ltd issued a further 10 000 ordinary shares for cash. The weighted average number of shares for use in the earnings per share calculation is:
Multiple Choice
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If all of the dilutive securities were converted into ordinary shares, the diluted earnings per share ratio:
Multiple Choice
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Earnings per share is calculated by comparing an entity's (profit or revenue) with the :
Multiple Choice
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The profit or loss that is used in the calculation of basic earnings per share is calculated as:
Multiple Choice
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EPS refers to:
Multiple Choice
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