CA Intermediate Paper 1

AS 20 - Earnings Per Share MCQ

Chapter 8 • 5 Questions from ICAI Study Material

Questions

5

Est. Time

8 min

Source

ICAI Book

Sample Questions: AS 20 - Earnings Per Share

Preview 3 of 5 questions from Chapter 8

1. Additional 50,000 shares were issued on July 1, and 25,000 shares were re- acquired on September 1. The weighted average number of shares outstanding during the year on Dec. 31 is

A) 1,40,000 shares
B) 1,25,000 shares
C) 1,16,667 shares ✓
D) 1,20,000 shares

2. As per AS 20, potential equity shares should be treated as dilutive when, and only when, their conversion to equity shares would

A) Decrease net profit per share from continuing ordinary operations. ✓
B) Increase net profit per share from continuing ordinary operations.
C) Make no change in net profit per share from continuing ordinary operations.
D) Decrease net loss per share from continuing ordinary operations.

3. As per AS 20, equity shares which are issuable upon the satisfaction of certain conditions resulting from contractual arrangements are

A) Dilutive potential equity shares
B) Contingently issuable shares ✓
C) Contractual issued shares
D) Potential equity shares