EARNINGS PER SHARE (EPS)

Question 1

__________________ is the amount
attributable to every ordinary share
outstanding during the period.

Answer 1

Earnings per share

Question 2

Earnings per share:

The corporation’s net profit ________ by the
number of ordinary shares it has outstanding

Answer 2

divided

Question 3

_______________ are required to present
earnings per share.

Answer 3

Public entities

Question 4

Nonpublic entities are ________________ but are
encouraged to present earnings per share

Answer 4

not required

Question 5

An entity that reports a discontinued
operation shall ________ the basic and
diluted amounts per share for the
discontinued operation either on the face
of the income statement or in the notes
to the statements.

Answer 5

disclose

Question 6

When the entity presents both consolidated
and separate: present only in the
_____________________ statements.

Answer 6

consolidated

Question 7

If the entity chooses to disclose in separate
financial statements, present in the face of
the separate income statement ____________________
the earnings per share in the consolidated financial statement.

Answer 7

Do not present

Question 8

Uses of Earnings per Share:

It is a determinant of the ______________ of
ordinary share, thus indicating the
attractiveness of ordinary share as an
investmen

Answer 8

market price

Question 9

Uses of Earnings per Share:

It is “measure of _____________” of
management in conducting operations

Answer 9

performance

Question 10

Any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Answer 10

Equity instrument

Question 11

Is a financial instrument or other contract that may entitle the holder to ordinary shares.

Answer 11

Potential ordinary share

Question 12

Is any contract that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.

Answer 12

Financial instrument

Question 13

Financial instruments that give the holder the right to purchase ordinary shares.

Answer 13

Warrants or options

Question 14

Preference share is cumulative – preference dividend is
_____ to current year only whether declared on not.

Answer 14

equal

Question 15

Preference share is noncumulative – preference
dividend is equal to current year only is deducted only if
there is a ____________ declaration.

Answer 15

dividend

Question 16

If there is significant changes in the ordinary share
capital during the year, the _______________________________
of ordinary shares outstanding during the period should
be used as denominator.

Answer 16

weighted average number

Question 17

Shares are usually included in the weighted number of
shares from the date of consideration is ______________,
which is usually the date of issue.

Answer 17

receivable

Question 18

______________ shares in exchange for cash are included
when cash is receivable.

Answer 18

Ordinary

Question 19

Ordinary shares issued as a result of the conversion
of debt instrument to ordinary shares are included
from the date that interest ceases to _________.

Answer 19

accrue

Question 20

Ordinary shares that will be issued upon conversion
of a mandatory convertible instrument are ____________
in the calculation of basic earnings per share from the
date the contract is entered into.

Answer 20

included

Question 21

Under IFRS, subscribed ordinary shares or partly
paid shares are included in EPS to the extent that
they are entitled to participate in dividends.

‒ Under the Philippine jurisdiction, subscribed shares are
entitled to ____________________in dividends.

Answer 21

participate fully

Question 22

Ordinary shares are issued to existing
shareholders for _______________________.

Answer 22

no consideration

Question 23

Number of ordinary shares is__________ without
increase in resources.

Answer 23

increased

Question 24

Bonus issue =

Answer 24

share dividend

Question 25

The number of ordinary share outstanding is
adjusted for the proportionate change in the number
of ordinary shares outstanding as if the bonus issue
has occurred at the beginning of the ____________period
presented.

Answer 25

earliest

Question 26

The market value of the share right-on is
actually the ______________of the share
immediately prior to the exercise of rights.

Answer 26

market value

Question 27

Theoretical market value of the share ex-right is _______ to the total market value of shares outstanding plus the proceeds from theexercise of rights divided by the number of shares outstanding after the exercise of rights.

Answer 27

equal