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15 Cards in this Set
- Front
- Back
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d. Entities whose ordinary shares and potential ordinary shares are publicly traded and entities that are in the process of issuing ordinary shares in public market. |
EPS disclosures are required for a. Entities whose ordinary shares and potential ordinary shares are publicly traded. b. Entities that are in the process of issuing ordinary shares in the public market. c. All entities. d. Entities whose ordinary shares and potential ordinary shares are publicly traded and entities that are in the process of issuing ordinary shares in public market. |
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b. Required for public entities and encouraged for nonpublic entities |
EPS disclosures are a. Required for all public and nonpublic entities b. Required for public entities and encouraged for nonpublic entities c. Encouraged for public entities and required for nonpublic entities d. Encouraged for all entities |
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c. Only for consolidated financial statements. |
When an entity issues both consolidated and separate financial statements, the EPS information is required a. For both sets of financial statements b. In neither set of financial statements c. Only for consolidated financial statements. d. Only for separate financial statements |
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d. Average ordinary shares outstanding during the year |
Earnings per share shall be computed on the basis of a. Ordinary shares outstanding at the end of the year b. Ordinary shares outstanding at the beginning of year c. Ordinary shares outstanding at the middle of the year d. Average ordinary shares outstanding during the year, |
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d. Gross income |
Earnings per share shall be reported for all of the following except
a. Income from continuing operations b. Income from discontinued operations c. Net income d. Gross income |
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a. Is an equity instrument that is subordinate to all other classes of equity instrument. |
An ordinary share
a. Is an equity instrument that is subordinate to all other classes of equity instrument. b. In a financial instrument that may entitle the holder to ordinary shares. c. Is a financial instrument that gives the holder the right to purchase ordinary shares. d. Is either a financial liability or an equity mstrument. |
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c. Annual preference dividend |
In computing basic earnings per share, if the preference shares are cumulative, the amount that should be deducted as an adjustment to the numerator is the a. Preference dividends in arrears b. Preference dividends paid during the year c. Annual preference dividend d. Annual ordinary dividend |
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b. Deducted from net income only when declared |
In computing basic earnings per share, the amount of preference dividends on noncumulative preference shares should be a. Deducted from net income whether declared or not b. Deducted from net income only when declared c. Added to net income only when declared d. Ignored |
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c. Deducted from net income whether declared or not |
In computing basic earnings per share, the full amount of the required preference dividends on cumulative preference shares for the period should be
a. Ignored b. Deducted from net income only when declared c. Deducted from net income whether declared or not d. Added to net income whether declared or not |
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c. Added to the net loss whether declared or not |
In computing basic loss per share, the annual preference dividend on cumulative preference shares should be
a. Ignored b. Deducted from the net loss whether declared or not c. Added to the net loss whether declared or not d. Added to the net loss only when declared |
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c. In the income statement |
Where in the financial statements should basic and diluted EPS be reported? a. In the accompanying notes b. In management discussion and analysis c. In the income statement d. In the statement of cash flows |
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c. Either on the face of the income statement or in the notes to financial statements. |
An entity that reports a discontinued operation shall present basic and diluted earnings per share for the discontinued operation a. Only on the face of the income statement. b. Only in the notes to financial statements. c. Either on the face of the income statement or in the notes to financial statements. d. Only if management chooses to do so. |
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d. Voting ordinary shares and preference shares |
Earnings per share should be computed on the basis of a. Preference shares b. Voting ordinary shares c. Voting and nonvoting ordinary shares d. Voting ordinary shares and preference shares |
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b. Cumulative |
Undeclared preference dividends are deducted from net income in the EPS computation for which preference shares? a. Noncumulative b. Cumulative c. Neither cumulative nor noncumulative d. Both cumulative and noncumulative |
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c. Income from continuing operations |
Earnings per share should always be reported for a. Gross income b. Income before tax c. Income from continuing operations d. Prior period error |
