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CA Final Ind AS 33 Earnings per Share — practice questions

Explore 37 free Ind AS 33 Earnings per Share questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 33 Earnings per Share questions and exercises with answers

Showing questions 1–30 of 37.

Earnings per share expresses profit as an amount for each what?Read the answer and worked solution →Before computing EPS, what is subtracted from profit?Read the answer and worked solution →A cumulative preference dividend is deducted for EPS in which case?Read the answer and worked solution →Profit is Rs 12,00,000, preference dividend Rs 2,00,000 and weighted average shares 50,000. What is the basic EPS?Read the answer and worked solution →Cumulative preference dividend of Rs 1,60,000 is undeclared; profit Rs 9,60,000; shares 40,000. Basic EPS?Read the answer and worked solution →Diluted EPS is computed using which share count?Read the answer and worked solution →Diluted EPS is described as which kind of scenario?Read the answer and worked solution →Which of these is dilutive potential common stock under IFRS?Read the answer and worked solution →For diluted EPS, what adjustment reflects conversion of convertible bonds?Read the answer and worked solution →For convertible preferred stock, diluted EPS adds back what to earnings?Read the answer and worked solution →Net income is Rs 20,00,000 with 50,000 shares and no preference shares. Basic EPS is?Read the answer and worked solution →Earnings Rs 20,00,000, shares 50,000, bonds convert into 50,000 shares. Ignore interest. Diluted EPS?Read the answer and worked solution →Which method does FASB prescribe for the dilutive effect of options?Read the answer and worked solution →To compute diluted EPS, which parts may need adjustment?Read the answer and worked solution →What does a stock split do to the number of shares?Read the answer and worked solution →After a stock split, the total market capitalization is what?Read the answer and worked solution →A firm has 100 shares priced at $50 and splits 2-for-1. The new price per share is?Read the answer and worked solution →Profit Rs 10,00,000 on 1,00,000 shares. After a 2-for-1 split, what is the EPS?Read the answer and worked solution →A holder with 100 shares gets a 3-for-1 split. Shares held afterwards?Read the answer and worked solution →Why might a firm split its stock?Read the answer and worked solution →Which is the main effect of a stock split?Read the answer and worked solution →Investors holding fractions after a split may receive what?Read the answer and worked solution →Which split ratio is among the most common?Read the answer and worked solution →A rights issue gives existing holders what?Read the answer and worked solution →100 shares bought at $400; 1:1 rights at $200 taken up. Average cost per share?Read the answer and worked solution →100 million shares at $400; 1:1 rights issue at $200. Price after full exercise?Read the answer and worked solution →If all rights are exercised and the cash is left idle, EPS is?Read the answer and worked solution →What is the role of an underwriter in a rights issue?Read the answer and worked solution →An over-subscription privilege lets an investor do what?Read the answer and worked solution →What does stock dilution reduce?Read the answer and worked solution →

Worked practice questions

Earnings per share expresses profit as an amount for each what?

  1. Employee of the firm
  2. Outstanding common share
  3. Rupee of total assets
  4. Unit of goods sold
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Correct answer: B. Outstanding common share

EPS divides earnings available to owners by the common shares outstanding, giving profit per share.

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Before computing EPS, what is subtracted from profit?

  1. Equity share dividends
  2. Preferred share dividends
  3. Depreciation charges
  4. Audit fees and costs
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Correct answer: B. Preferred share dividends

Preference holders rank ahead of ordinary holders, so their dividend is deducted to reach earnings for ordinary shares.

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A cumulative preference dividend is deducted for EPS in which case?

  1. Only if it is declared
  2. Only if it is paid in cash
  3. Only after a court order
  4. Whether or not declared
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Correct answer: D. Whether or not declared

Cumulative dividends build up as payable, so the year's amount reduces earnings for ordinary holders even if undeclared.

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