2013 April no8
why the answer is C?
2013 April no 9
Which of the following best explains why companies must publish their diluted earnings per share?
A. Diluted earnings per share takes account of the board’s intentions to issue fresh equity.
B. Undiluted earnings per share is irrelevant for decision making purposes.
C. The undiluted earnings per share figure can be misleading when an equity issue has occurred during the year.
D. Existing equity holdings can be diluted by the right to purchase fresh equity at a preferential rate.
For this question why D is not accepted ?
2013 April no 10
A manufacturing company has consistently used historical cost accounting since its incorporation. Which of the following best describes the implications of basing the return on capital employed ratio (return) on historical cost figures?
The answer is Return is likely to be overstated and capital employed is likely to be understated. Can i know why capital employed is likely to be understated
why the answer is C?
2013 April no 9
Which of the following best explains why companies must publish their diluted earnings per share?
A. Diluted earnings per share takes account of the board’s intentions to issue fresh equity.
B. Undiluted earnings per share is irrelevant for decision making purposes.
C. The undiluted earnings per share figure can be misleading when an equity issue has occurred during the year.
D. Existing equity holdings can be diluted by the right to purchase fresh equity at a preferential rate.
For this question why D is not accepted ?
2013 April no 10
A manufacturing company has consistently used historical cost accounting since its incorporation. Which of the following best describes the implications of basing the return on capital employed ratio (return) on historical cost figures?
The answer is Return is likely to be overstated and capital employed is likely to be understated. Can i know why capital employed is likely to be understated