UEH Trắc nghiệm ôn thi kế toán quốc tế 2

Bài tập chủ đề “Lợi nhuận trên mỗi cổ phiếu”

I.TRẮC NGHIỆM:
Câu 1 (ĐỀ THT): In determining diluted earnings per share, dividends on nonconvertible cumulative
preference shares should be:
Select one:
a. Disregarded
b. deducted from net income whether declared or not
c. added back to net income whether declared or not
d. deducted from net income only if declared
diluted earnings per share : (là cổ tức ưu đãi nhưng: Dilutive khơng chuyển đổi thì vẫn phải trừ (-)
chuyển đổi thì giữ nguyên)
Câu 2 (ĐỀ THT): Dilutive convertible securities must be used in the computation of
Select one:
a. basic earnings per share only
b. diluted earnings per share only
c. diluted and basic earnings per share
d. None of these answers are correct
Câu 3 (ĐỀ THT): Earnings per share is calculated by:
Select one:
a.
dividing profit or loss attributable to preference shareholders of a parent entity, by the weighted
average number of ordinary shares the entity has on issue during the reporting period
b.
dividing profit or loss attributable to ordinary shareholders of a parent entity, by the weighted
average number of ordinary shares the entity has on issue during the reporting period
c.
dividing profit or loss attributable to ordinary shareholders of a parent entity, by the number of
ordinary shares the entity has on issue at the beginning of the reporting period

Select one:
d.
dividing profit or loss attributable to ordinary shareholders of a parent entity, by the number of
ordinary shares the entity has on issue at the end of the reporting period
Câu 4 (ĐỀ THT): Earnings per share is calculated by comparing an entity’s:
a. revenue with the number of ordinary shares it has on issue
b. profit with the number of ordinary shares it has on issue
c. revenue with the number of shareholders
d. profit with the number of shareholders
Câu 5 (ĐỀ THT): The profit or loss that is used in the calculation of basic earnings per share is
calculated as:
Select one:
a. Profit before tax expense – tax expense – preference dividends
b. Profit before tax expense – tax expense
c. Profit before tax expense – tax expense – ordinary dividends
d. Profit before tax expense
Câu 6 (ĐỀ THT): Any errors or adjustments resulting from changes in accounting policies that are
accounted for retrospectively(hồi tố) require:
Select one:
a. a retrospective adjustment to both basic and diluted earnings per share
b. no retrospective adjustment to either basic or diluted earnings per share
c. a retrospective adjustment to diluted earnings per share only
d. a retrospective adjustment to basic earnings per share only
Câu 7 (ĐỀ THT): Assume there are two dilutive convertible securities. The one that should be used
first to recalculate earnings per share is the security with the (EPIS)
Select one:
a. smaller earnings effect per share
b. greater earnings effect per share

Select one:
c. smaller earnings adjustment
d. greater earnings adjustment
Câu 8 (ĐỀ THT): Under paragraph 4, if an entity presents both consolidated (hợp nhất) and separate
(tách biệt) financial statements, the IAS 33 disclosures need only be determined on the basis of:
a. consolidated information (only in consolidated)
b. parent entity only
c. subsidiary entities only
d. the entity has choice of either parent entity or consolidation
Câu 9 (ĐỀ THT): What effect will the acquisition of treasury shares have on shareholders' equity
and earnings per share, respectively?
Select one:
a. Decrease and no effect
b. Increase and no effect
c. Decrease and increase
d. Increase and decrease
CPQ tăng => VSCH giảm => EPS tăng
Câu 10 (ĐỀ THT): When applying the treasury share method for diluted earnings per share, the
market price of the ordinary shares used for the repurchase is the (option, warrant)
Select one:
a. None of these answers are correct
b. price at the beginning of the year
c. price at the end of the year
d. average market price
Câu 11 (ĐỀ THT): When computing diluted earnings per share, convertible bonds are
Select one:
a. assumed converted whether they are dilutive or antidilutive


Select one:

b. assumed converted only if they are antidilutive
c. ignored
d. assumed converted only if they are dilutive
Câu 12 (ĐỀ THT): When computing diluted earnings per share, convertible securities are:
a. recognized whether they are dilutive or antidilutive
b. recognized only if they are dilutive
c. ignored
d. recognized only if they are antidilutive
Câu 13 (ĐỀ THT): The basic earnings per share and diluted earnings per share ratios must be
presented in an entity’s:
Select one:
a. statement of profit or loss and other comprehensive income even if the amounts are negative
b. statement of financial position even if the amounts are negative
c. statement of profit or loss and other comprehensive income only if the amounts are positive
d. statement of changes in equity even if the amounts are negative
(negative + positive => luôn luôn P/L + OCI)
Câu 14 (ĐỀ THT): If the entity has a discontinued operation, then it must also calculate and disclose
the: Select one:
a.
the basic and diluted earnings per share ratios for the discontinued operation in the statement of
profit or loss and other comprehensive income only if the discontinued operation contributed a profit in the
current reporting period
b.
the diluted earnings per share ratio only for the discontinued operation in the statement of profit or
loss and other comprehensive income
c.
the basic and diluted earnings per share ratios for the discontinued operation in the statement of
profit or loss and other comprehensive income
d.
the basic earnings per share ratio only for the discontinued operation in the statement of profit or

loss and other comprehensive income


Select one:
Câu 15 (ĐỀ THT): A company issues bonus shares for no consideration ( phí khi chuyển đổi sớm) on
1 August 2014. For the reporting period ended 30 June 2015, the calculation of:
Select one:
a.
only the diluted earnings per share must be adjusted retrospectively for all periods that are presented
in the financial statements


b.
both basic earnings per share and diluted earnings per share may be adjusted retrospectively at the
option of the entity for all periods that are presented in the financial statements
c.
only basic earnings per share must be adjusted retrospectively for all periods that are presented in
the financial statements
d.
both basic earnings per share and diluted earnings per share must be adjusted retrospectively for all
periods that are presented in the financial statements
(no consideration: k thay đổi => k tính trọng số => phải hồi tố: retrospectively)
Câu 16 (ĐỀ THT): In applying the treasury share method to determine the dilutive effect of share
options and warrants, the proceeds assumed to be received upon exercise of the options and warrants
Select one:
a. are disregarded in the computation of earnings per share if the exercise price of the options and warrants
is less than the ending market price of ordinary shares
b. None of these answers are correct
c. are used to calculate the number of ordinary shares repurchased at the average market price, when
computing diluted earnings per share

d. are added, net of tax, to the numerator of the calculation for diluted earnings per share
Câu 17 (ĐỀ THT): If all of the dilutive securities were converted into ordinary shares, the diluted
earnings per share ratio:
Select one:
a. must include an adjustment to decrease the weighted average number of ordinary shares that would be
outstanding
b. must include an adjustment to increase the weighted average number of ordinary shares that would be
outstanding
c. may include an adjustment to increase the weighted average number of ordinary shares that would be
outstanding
d. must include an adjustment to increase the number of ordinary shares that would be outstanding
Câu 18 (ĐỀ THT): The number of shares used in the calculation of earnings per share is:
Select one:
a.
the number of ordinary and preference shares adjusted by a time-weighting factor which is the
number of days in the reporting period that the shares are outstanding as a proportion of the total number
of days in the period


b.
the average of the number of ordinary shares outstanding at the beginning (=> during: True) and
end of the reporting period
c.
the number of preference shares adjusted by a time-weighting factor which is the number of days
in the reporting period that the shares are outstanding as a proportion of the total number of days in the
period
d.
the number of ordinary shares adjusted by a time-weighting factor which is the number of days in
the reporting period that the shares are outstanding as a proportion of the total number of days in the period
Câu 19 (ĐỀ THT): In computing earnings per share for a simple capital structure, if the preference

shares are cumulative, the amount that should be deducted as an adjustment to the numerator
(earnings) is the (preference dividend: năm nào trả năm đó) Select one:
a. annual preference dividend times (one minus the income tax rate) ( đúng nếu khơng có vế sau) b.
None of these answers are correct
c. preference dividends in arrears (trả sau)
d. preference dividends in arrears times (one minus the income tax rate)
Câu 20 (ĐỀ THT): IAS 33 applies to the computation and presentation of earnings per share by:
Select one:
a. only those entities that are in the process of issuing ordinary shares that will be traded in public markets
b. both reporting and non-reporting entities
c. reporting entities whose shares are publicly traded (đã giao dịch ), or of entities that are in the process
of issuing ordinary shares that will be traded in public markets (đã phát hành)
d. only reporting entities whose shares are publicly traded
Câu 21 (ĐỀ THT): In the diluted earnings per share computation, the treasury share method is used
for options and warrants to reflect assumed reacquisition of ordinary shares at the average market
price during the period. If the exercise price of the options or warrants exceeds the average market
price, the computation would
Select one:
a. reflect the excess of the number of shares assumed issued over the number of shares assumed reacquired
as the potential dilution of earnings per share
b. fairly present diluted earnings per share on a prospective basis
c. fairly present the maximum potential dilution of diluted earnings per share on a prospective basis
d. be antidilutive


(In the money: Exercise < average
Out of the money: Exercise > average)
Câu 22 (ĐỀ THT): In computing earnings per share, the equivalent number of shares of convertible
preference shares are added as an adjustment to the denominator (number of shares outstanding). If
the preference shares are cumulative, which amount should then be added as an adjustment to the

numerator (net earnings)?
Select one:
a. Annual preference dividend times the income tax rate
b. Annual preference dividend times (one minus the income tax rate)
c. Annual preference dividend divided by the income tax rate
d. Annual preference dividend trái phiếu thì tính trước thuế [interest (1-tax)]
Câu 23 (ĐỀ THT): Terry Corporation had 300,000 ordinary shares outstanding at December 31,
2019. In addition, it had 90,000 share options outstanding, which had been granted to certain
executives, and which gave them the right to purchase Terry's shares at an option price of €37 per
share. The average market price of Terry's ordinary shares for 2019 was €50. What is the number of
shares that should be used in computing diluted earnings per share for the year ended December 31,
2019?
Select one:
a. None of these answers are correct
b. 366,600
c. 300,000
d. 331,622
e. 323,400
300 + 90x(1- 37/50)
Câu 24 (ĐỀ THT): Hill Corp. had 600,000 ordinary shares outstanding on January 1, issued 900,000
shares on July 1, and had income applicable to common stock of €1,050,000 for the year ending
December 31, 2019. Earnings per share for 2019 would be
Select one:
a. None of these answers are correct
b. €1.75


c. €1.00
d. €0.83
e. €1.17

1050/(600+900*6/12) = 1050/(600*6/12+1500*6/12)
Câu 25 (ĐỀ THT): Milo Co. had 600,000 ordinary shares outstanding on January 1, issued 126,000
shares on May 1, purchased 63,000 shares of treasury shares on September 1, and issued 54,000
shares on November 1. The weighted avera ge shares outstanding for the year is
Select one:
a. 672,000
b. 651,000
c. 714,000
d. None of these answers are correct
e. 693,000
600*4/12 + 726*4/12 + (726-63) *2/12 + (726-63+54)*2/12 = 600 + 126*8/12 – 63*4/12 +54*2/12
Câu 26 (ĐỀ THT): At December 31, 2018, Sager Co. had 1,200,000 ordinary shares outstanding. In
addition, Sager had 450,000 shares of preference shares which were convertible into 750,000 ordinary
shares. During 2019, Sager paid £600,000 ordinary cash dividends and £400,000 preference cash
dividends. Net income for 2019 was £3,400,000 and the income tax rate was 40%. The diluted earnings
per share for 2019 is (rounded to the nearest penny)
Select one:
a. £2.84
b. None of these answers are correct
c. £1.24
d. £1.74
e. £2.51
(là Dilutive nên nếu convertible thì khơng đụng đến dividend; nếu nonconvertible thì trừ ra)
3.400/(1.200+750)


Câu 27 (ĐỀ THT): XYZ Ltd has 10 000 ordinary shares on issue at 1 July 2015 which is the beginning
of its reporting period. On 1 May 2016, it issued a further 2000 ordinary shares for cash. The weighted
average number of shares for use in the earnings per share calculation is:
Select one:

a.

12,000 shares

b.

10,000 shares

c.

11,000 shares

d.

10,333 shares

10+2*2/12 = 10*10/12 + 12*2/12
Câu 28 (ĐỀ THT): Nolte Co. has 4,000,000 ordinary shares outstanding on December 31, 2018. An
additional 200,000 shares are issued on April 1, 2019, and 480,000 more on September 1. On October
1, Nolte issued €6,000,000 of 9% convertible bonds. The bonds are dilutive. Each €1,000 bond is
convertible into 40 ordinary shares. No bonds have been converted. The number of shares to be used
in computing basic earnings per share and diluted earnings per share on December 31, 2019 is:
Select one:
a. 4,310,000 and 4,370,000
b. None of these answers are correct
. c. 4,310,000 and 4,550,000
d. 5,080,000 and 5,320,000
e. 4,310,000 and 4,310,000
computing basic earnings per share = 4000+200*9/12 +480*4/12 = 4000*3/12 +4200*5/12 +4680
*4/12

= 4310 diluted earnings per share = 4310 + 6000/1000*40*3/12
= 4370
Câu 29 (ĐỀ THT): Fultz Company had 300,000 ordinary shares issued and outstanding at December
31, 2018. During 2019, no additional ordinary shares were issueD. On January 1, 2019, Fultz issued
400,000 shares of nonconvertible preference shares. During 2019, Fultz declared and paid €180,000
cash dividends on the ordinary shares and €150,000 on the nonconvertible preference shares. Net
income for the year ended December 31, 2019, was €960,000. What should be Fultz's 2019 earnings
per share, rounded to the nearest penny?
Select one:
a. None of these answers are correct


b. €2.70
c. €3.20
d. €2.10
e. €1.16
(non-convertible nên phải trừ cổ tức)
(960-150)/300
Câu 30 (ĐỀ THT): On January 2, 2019, Worth Co. issued at par £2,000,000 of 7% convertible bonds.
Each £1,000 bond is convertible into 20 ordinary shares. No bonds were converted during 2019.
Worth had 200,000 ordinary shares outstanding during 2019. Worth’s 2019 net income was £600,000
and the income tax rate was 30%. Worth’s diluted earnings per share for 2019 would be (rounded to
the nearest penny):
Select one:
a. None of these answers are correct
b. £3.49
c. £2.91
d. £3.00
e. £3.08
Câu 31 (ĐỀ THT): Warrants exercisable at £20 each to obtain 30,000 ordinary shares were

outstanding during a period when the average market price of the ordinary shares was £25.
Application of the treasury share method for the assumed exercise of these warrants in computing
diluted earnings per share will increase the weighted average number of outstanding shares by
Select one:
a. None of these answers are correct
b. 24,000
c. 6,000
d. 30,000
e. 7,500
30000(1-20/25) = 6000


Câu 32 (ĐỀ THT): Harry Ltd determined its profit attributable to ordinary shareholders for the
reporting period ended 30 June 2016 as €960,000. The average market price of the entity’s shares
during the period is €4.00 per share. The weighted average number of ordinary shares on issue during
the period is 1,000,000. The weighted average number of shares under share options arrangements
during the year is 200,000 and the exercise price of shares under option is €3.50. The diluted earnings
per share at 30 June 2016 is:
Select one:
a. €0.80
b. €0.94
c. €4.00
d. €1.24
960/(1000+200(1-3,5/4)) = 0.94
Câu 33 (ĐỀ THT): Marsh Co. had 2,400,000 ordinary shares outstanding on January 1 and December
31, 2018. In connection with the acquisition of a subsidiary company in June 2017, Marsh is required
to issue 100,000 additional ordinary shares on July 1, 2019, to the former owners of the subsidiary.
Marsh paid €200,000 in preference share dividends in 2018, and reported net income of €3,400,000
for the year. Marsh's diluted earnings per share for 2018 should be:
Select one:

a. $1.36
b. None of these answers are correct
c. $1.42
d. $1.33
e. $1.28
(3400-200)/(2400+100) = 1.28
Câu 34 (ĐỀ THT): Kasravi Co. had net income for 2019 of €300,000. The average number of shares
outstanding for the period was 200,000 shares. The average number of shares under outstanding
options, at an option price of €30 per share is 12,000 shares. The average market price of the ordinary
shares during the year was €36. What should Kasravi Co. report for diluted earnings per share for
the year ended 2019?
Select one:
a. €1.43


b. €1.50
c. €1.42
d. None of these answers are correct
e. €1.49
300/(200+12(1-30/36)) = 1.49
Câu 35 (ĐỀ THT): At December 31, 2019, Hancock Company had 500,000 ordinary shares issued
and outstanding, 400,000 of which had been issued and outstanding throughout the year and 100,000
of which were issued on October 1, 2019. Net income for the year ended December 31, 2019, was
€1,020,000. What should be Hancock's 2019 earnings per share, rounded to the nearest penny?
Select one:
a. €2.27
b. €2.40
c. €2.02
d. €2.55
e. None of these answers are correct

1020/(400+100*3/12) = 2.4
Câu 36 (ĐỀ THT): Shipley Corporation had net income for the year of £480,000 and a weighted
average number of ordinary shares outstanding during the period of 200,000 shares. The company
has a convertible bond issue outstanding. The bonds were issued four years ago at par (£2,000,000),
carry a 7% interest rate, and are convertible into 40,000 shares. The company has a 40% tax rate.
Diluted earnings per share are:
Select one:
a. £2.58
b. None of these answers are correct
c. £2.35
d. £1.65
e. £2.23
(480+7%*2000*60%)/(200+40) = 2.35


Câu 37 (ĐỀ THT): Foyle, Inc., had 560,000 ordinary shares and outstanding at December 31, 2018.
On July 1, 2016, an additional 40,000 shares were issued for cash. Foyle also had unexercised share
options to purchase 32,000 ordinary shares at £15 per share outstanding at the beginning and end of
2019. The average market price of Foyle's ordinary shares was £20 during 2019. What is the number
of shares that should be used in computing diluted earnings per share for the year ended December
31, 2019? Select one:
a. 612,000
b. 608,000
c. None of these answers are correct
d. 588,000
e. 580,000
560+40*6/12+32*(1-15/20) = 588
Câu 38 (ĐỀ THT): At December 31, 2019 and 2018, Miley Corp. had 180,000 ordinary shares and
10,000 shares of 5%, €100 par value cumulative preference shares outstanding. No dividends were
declared on either the preference or ordinary shares in 2019 or 2018. Net income for 2019 was

€400,000. For 2019, earnings per share amounted to Select one:
a. €2.22
b. €1.67
c. None of these answers are correct
d. €1.11
e. €1.94
(400-10*5%*100)/180 = 1.94
Câu 39 (ĐỀ THT): At December 31, 2018 Rice Company had 300,000 ordinary shares and 10,000
shares of 5%, £100 par value cumulative preference shares outstanding. No dividends were declared
on either the preference or ordinary shares in 2018 or 2019. On January 30, 2020, prior to the
issuance of its financial statements for the year ended December 31, 2019, Rice declared a 100% share
dividend on its ordinary shares. Net income for 2019 was £950,000. In its 2019 financial statements,
Rice's 2019 earnings per share should be:
Select one:
a. £1.50
b. £3.17


c. None of these answers are correct
d. £3.00
e. £1.58
(950-10%*5*100)/(300+300) = 1.5
Câu 40 (ĐỀ THT): At December 31, 2018 Pine Company had 200,000 ordinary shares and 10,000
shares of 4%, €100 par value cumulative preference shares outstanding. No dividends were declared
on either the preference or ordinary shares in 2018 or 2019. On February 10, 2020, prior to the
issuance of its financial statements for the year ended December 31, 2019, Pine declared a 100% stock
split on its ordinary shares. Net income for 2019 was €720,000. In its 2019 financial statements, Pine’s
2019 earnings per share should be:
Select one:
a. None of these answers are correct

b. €3.20
c. €1.00
d. €1.70
e. €3.40
(720-10*4%*100)/(200+200) = 1.7
Câu 41 (ĐỀ THT): At December 31, 2018, Emley Company had 1,200,000 ordinary shares
outstanding. On September 1, 2019, an additional 400,000 ordinary shares were issueD. In addition,
Emley had €12,000,000 of 6% convertible bonds outstanding at December 31, 2018, which are
convertible into 800,000 ordinary shares. No bonds were converted in 2019. The net income for the
year ended December 31, 2019, was €4,500,000. Assuming the income tax rate was 30%, what should
be the diluted earnings per share for the year ended December 31, 2019, rounded to the nearest cent?
Select one:
a. None of these answers are correct
b. $2.35
c. $2.11
d. $3.38
e. $2.45
(4500+12000*6%*70%)/(1200+400*4/12+800) = 2.35


Câu 42 (ĐỀ THT): On January 2, 2019, Perez Co. issued at par €10,000 of 6% bonds convertible in
total into 1,000 ordinary shares of Perez's. No bonds were converted during 2019. Throughout 2019,
Perez had 1,000 ordinary shares outstanding. Perez's 2019 net income was €3,000, and its income tax
rate is 30%. No potentially dilutive securities other than the convertible bonds were outstanding
during 2019. Perez's diluted earnings per share for 2019 would be (rounded to the nearest cent):
Select one:
a. €1.50
. €3.42
c. None of these answers are correct
d. €1.80

e. €1.71
(3000+10.000*6%*70%)/(1000+1000) = 1.71
(Diluted : giả định chuyển đổi)
Câu 43 (ĐỀ THT): Hanson Co. had 200,000 ordinary shares, 20,000 shares of convertible preference
shares, and €1,000,000 of 10% convertible bonds outstanding during 2019. The preference shares are
convertible into 40,000 ordinary shares. During 2019, Hanson paid dividends of €1.20 per share on
the ordinary shares and €4 per share on the preference shares. Each €1,000 bond is convertible into
45 ordinary shares. The net income for 2019 was $800,000 and the income tax rate was 30%. Basic
earnings per share for 2019 is (rounded to the nearest penny):
Select one:
a. €3.60
b. €3.35
c. €2.94
d. €3.22
e. None of these answers are correct
(800-4*20)/200 = 3.6
Câu 44 (ĐỀ THT): ABC Ltd has 21,000 ordinary shares on issue at 1 January 2016 which is the
beginning of its reporting period. On 30 June 2016, it issued a further 2,000 ordinary shares for cash.
On 1 November 2016, ABC Ltd repurchased 600 shares at fair value in a market transaction. The
weighted average number of shares for use in the earnings per share calculation is:
Select one:


a. 21,900 shares
b. 21,700 shares
c. 22,400 shares
d. 21,000 shares
21+2*6/12 – 0,6*2/12 = 21.9
Câu 45 (ĐỀ THT): Beaty Inc. purchased Dunbar Co. and agreed to give shareholders of Dunbar Co.
10,000 additional shares in 2020 if Dunbar Co.’s net income in 2019 is €500,000; in 2018 Dunbar Co.’s

net income is €520,000. Beaty Inc. has net income for 2018 of €200,000 and has an average number
of ordinary shares outstanding for 2018 of 100,000 shares. What should Beaty report as diluted
earnings per share for 2018?
Select one:
a. None of these answers are correct
b. €2.22
c. €1.82
d. €2.00
e. €1.67
200 / (100+10) = 1.82
Câu 46 (ĐỀ THT): Mary Ltd determined its profit attributable to ordinary shareholders for the
reporting period ended 30 June 2016 as £720,000. The number of ordinary shares on issue up to 31
October 2015 was 50,000. Mary Ltd announced a two-for- one bonus issue of shares effective for each
ordinary share outstanding at 31 October 2015. Basic earnings per share at 30 June 2016 is:
Select one:
a. £7.20
b. £9.60
c. £6.17
d. £4.80
720 / (50+100) = 4.8
Câu 47 (ĐỀ THT): Hanson Co. had 200,000 ordinary shares, 20,000 shares of convertible preference
shares, and €1,000,000 of 10% convertible bonds outstanding during 2019. The preference shares are


convertible into 40,000 ordinary shares. During 2019, Hanson paid dividends of €1.20 per share on
the ordinary shares and €4 per share on the preference shares. Each €1,000 bond is convertible into
45 ordinary shares. The net income for 2019 was $800,000 and the income tax rate was 30%. Diluted
earnings per share for 2019 is (rounded to the nearest penny):
Select one:
a. €3.33

b. None of these answers are correct
c. €2.77
d. €2.81
e. €3.05
TÍnh Dilutive:
1. EPS:
TỬ SỐ

MẪU SỐ

HỆ SỐ

720 [ 800 – 20*4]

200

3,6 [720/200]

40

2 [80/40]

70 [1000*10%*70%]

45 [1000/1000 *45]

1,5 [70/45]

TỬ SỐ

MẪU SỐ

HỆ SỐ

Basic

720

200

3,6

(1) Convertible bond

790 [720+70]

245 [200+45]

3,22

Convertible 870 [790+80]
preferred share

285 [245+40]

3,05

Basic
(2)

Convertible 80 [20*4]
preferred share

(1) Convertible bond
TIẾP THEO

(2)

Câu 48 (ĐỀ THT): Fugate Company had 500,000 ordinary shares issued and outstanding at
December 31, 2018. On July 1, 2019 an additional 500,000 shares were issued for cash. Fugate also
had share options outstanding at the beginning and end of 2019 which allow the holders to purchase
150,000 ordinary shares at €20 per share. The average market price of Fugate's ordinary shares was
€25 during 2016. What is the number of shares that should be used in computing diluted earnings
per share for the year ended December 31, 2019?
Select one:


a. 787,500
b. 1,030,000
c. 780,000
d. None of these answers are correct
e. 870,000
500+500*6/12 +150*(1-20/25) = 780
Câu 49 (ĐỀ THT): Yoder, Incorporated, has 3,200,000 ordinary shares outstanding on December 31,
2018. An additional 800,000 ordinary shares were issued on April 1, 2019, and 400,000 more on July
1, 2019. On October 1, 2019, Yoder issued 20,000, €1,000 face value, 8% convertible bonds. The bonds
are dilutive. Each bond is convertible into 20 ordinary shares. No bonds were converted in 2019.
What is the number of shares to be used in computing basic earnings per share and diluted earnings
per share, respectively?
Select one:

a. 4,000,000 and 4,000,000
b. 4,000,000 and 4,400,000
c. 4,400,000 and 5,200,000
d. 4,000,000 and 4,100,000
e. None of these answers are correct computing basic earnings per share = 3200+800*9/12 + 400*6/12 =
4000 diluted earnings per share = 4000 + 20*20*3/12 = 4100
Câu 50 (ĐỀ THT): Grimm Company has 1,800,000 ordinary shares outstanding on December 31,
2018. An additional 150,000 ordinary shares were issued on July 1, 2019, and 300,000 more on
October 1, 2019. On April 1, 2019, Grimm issued 6,000, €1,000 face value, 8% convertible bonds.
Each bond is convertible into 40 ordinary shares. The bonds are dilutive. No bonds were converted
in 2019. What is the number of shares to be used in computing basic earnings per share and diluted
earnings per share, respectively, for the year ended December 31, 2019?
Select one:
a. 1,950,000 and 2,130,000
b. None of these answers are correct
c. 1,950,000 and 1,950,000
d. 2,250,000 and 2,430,000
e. 1,950,000 and 2,190,000


computing basic earnings per share = 1800+150*6/12+300*3/12 = 1950 diluted
earnings per share = 1950+ 40*6*9/12 = 2130
Câu 51 (ĐỀ THT): Lerner Co. had 200,000 ordinary shares, 20,000 shares of convertible preference
shares, and €1,000,000 of 10% convertible bonds outstanding during 2019. The preference shares are
convertible into 40,000 ordinary shares. During 2019, Lerner paid dividends of €.90 per ordinary
share and €3.00 per preference share. Each €1,000 bond is convertible into 45 ordinary shares. The
net income for 2019 was €600,000 and the income tax rate was 30%. Basic earnings per share for
2019 is (rounded to the nearest penny)
Select one:
a. €2.21

b. €2.51
c. None of these answers are correct
d. €2.70
e. €2.42
(600-20*3)/200 = 2.7
Câu 52 (ĐỀ THT): Lerner Co. had 200,000 ordinary shares, 20,000 shares of convertible preference
shares, and €1,000,000 of 10% convertible bonds outstanding during 2019. The preference shares are
convertible into 40,000 ordinary shares. During 2019, Lerner paid dividends of €.90 per ordinary
share and €3.00 per preference share. Each €1,000 bond is convertible into 45 ordinary shares. The
net income for 2019 was €600,000 and the income tax rate was 30%. Diluted earnings per share for
2019 is (rounded to the nearest penny)
Select one:
a. €2.25
b. None of these answers are correct
c. €2.46
d. €2.14
e. €2.35

Basic

TỬ SỐ

MẪU SỐ

HỆ SỐ

540 [600-20*3]

200

2,7


(1)Convertible
preference

60 [20*3]

40

1,5

(2)Convertible bond

70 [1000*10%*70%]

45 [1000/1000 *45]

1,5667

600 [540+60]

240

2,5

285 [240+45]

2,35

TIẾP THEO
(1) Convertible
preference

(2) Convertible bond 670 [600+70]

Câu 53 (ĐỀ THT): At December 31, 2018, Tatum Company had 2,000,000 ordinary shares
outstanding. On January 1, 2019, Tatum issued 500,000 shares of preference shares which were
convertible into 1,000,000 ordinary shares. During 2019, Tatum declared and paid £1,500,000
ordinary cash dividends and £500,000 preference cash dividends. Net income for the year ended
December 31, 2019, was £5,000,000. Assuming an income tax rate of 30%, what should be diluted
earnings per share for the year ended December 31, 2019? (Round to the nearest cent.) Select one:
a. £1.67
b. £2.50
c. None of these answers are correct
d. £2.08
e. £$1.50
5000/(2000+1000) = 1.67 (được chuyển đổi nên không đụng vô dividend)
Câu 54 (ĐỀ THT): At December 31, 2018, Kifer Company had 500,000 ordinary shares outstanding.
On October 1, 2019, an additional 100,000 ordinary shares were issued. In addition, Kifer had
€10,000,000 of 6% convertible bonds outstanding at December 31, 2018, which are convertible into
225,000 ordinary shares. No bonds were converted in 2019. The net income for the year ended
December 31, 2019, was €3,000,000. Assuming the income tax rate was 30%, the diluted earnings per
share for the year ended December 31, 2019, should be (rounded to the nearest penny) Select one:
a. €4.80
b. €4.00
c. €4.56
d. €6.52

e. None of these answers are correct
( không chuyển đổi nhưng đối với diluted thì giả định chuyển đổi)
(3000+10000*6%*70%)/(500+100*3/12+225) = 4.56 Câu 55 (ĐỀ THT): On January 2, 2019, Mize Co.
issued at par €300,000 of 9% convertible bonds.
Each €1,000 bond is convertible into 30 ordinary shares. No bonds were converted during 2019. Mize
had 50,000 ordinary shares outstanding during 2019. Mize 's 2019 net income was €160,000 and the
income tax rate was 30%. Mize's diluted earnings per share for 2019 would be (rounded to the nearest
penny)
Select one:
a. €2.71
b. €3.20
c. None of these answers are correct
d. €3.03
e. €3.58
(160+300*9%*70%)/(50+(300/1000)*30) = 3.03
Câu 56 (ĐỀ THT): Didde Co. had 300,000 ordinary shares issued and outstanding at December 31,
2018. No ordinary shares were issued during 2019. On January 1, 2019, Didde issued 200,000 shares
of nonconvertible preference shares. During 2019, Didde declared and paid €100,000 cash dividends
on the ordinary shares and €80,000 on the preference shares. Net income for the year ended
December 31, 2019 was €620,000. What should be Didde's 2019 earnings per share?
Select one:
a. €1.80
b. €1.47
c. €1.73
d. None of these answers are correct
e. €2.07
(620-80)/300 = 1.8
Câu 57 (ĐỀ THT): Antidilutive securities:
Select one:

a. include share options and warrants whose exercise price is less than the average market price of ordinary
shares
b. should be ignored in all earnings per share calculations.
c. are those whose inclusion in earnings per share computations would cause basic earnings per share to
exceed diluted earnings per share. Sai
d. should be included in the computation of diluted earnings per share but not basic earnings per share
Câu 58 (ĐỀ THT): : On January 1, 2019, Gridley Corporation had 125,000 shares of its €2 par value
ordinary shares outstanding. On March 1, Gridley sold an additional 250,000 shares on the open
market at €20 per share. Gridley issued a 20% share dividend on May 1. On August 1, Gridley
purchased 140,000 shares and immediately retired the shares. On November 1, 200,000 shares were
sold for €25 per share. What is the weighted-average number of shares outstanding for 2019?
Select one:
a. None of these answers are correct
b. 375,000
c. 258,333
d. 358,333
e. 510,000
Câu 59 (ĐỀ THT): For the purposes of calculating diluted earnings per share, an entity shall adjust
the profit attributable to ordinary shareholders by the after-tax effect of the following item(s) related
to dilutive potential ordinary shares:
Select one:
a. other income or expenses only
b. interest only
c. dividends only
d. dividends, interest, other income or expenses
Câu 60 (ĐỀ PT): On March 1, 2013, Doll Co. issued 10-year convertible bonds at 106. During 2016,
the bonds were converted into ordinary shares when the market price of Doll's ordinary shares was
500 percent above its par value. On March 1, 2013, cash proceeds from the issuance of the convertible
bonds should be reported as:

Select one:


a. Equity for the portion of the proceeds attributable to the conversion feature and as a liability for the
balance
b. A liability for the principal amount of the bonds and share capital for the premium over the par value
c. Equity for the entire proceeds
d. A liability for the entire proceeds
Câu 61 (ĐỀ PT): What is diluted EPS?
Select one:
a. The expected EPS if all loans are discharged
b. The expected EPS if all securities with an equity interest, exercise those interests
c.The expected EPS if equity options and warrants are redeemed
d. The expected EPS if the share price falls
Câu 62 (ĐỀ PT): A company issues £500,000 of 6.5% loan stock at a discount of 8%. Issue costs of
£25,000 are incurred. The loan stock should be measured initially at:
Select one:
a. £475,000
b. £460,000
c. £435,000
d. £500,000
Câu 63 (ĐỀ PT): In computations of weighted average of shares outstanding, when a share dividend
or stock split occurs, the additional shares are:
Select one:
a. considered outstanding at the beginning of the year
b. considered outstanding at the beginning of the earliest year reported
c. weighted by the number of days outstanding
d. weighted by the number of months outstanding
Câu 64 (ĐỀ PT): Which of the following is not an example of a potential ordinary share?
Select one:

a. Convertible preferred share


b. Convertible debt
c. Standard preferred share
d. Share warrants
Câu 65 (ĐỀ PT): A company's profit after tax for the year to 30 June 2014 was £1m. The company's
issued share capital at 1 July 2013 consisted of 2,400,000 ordinary shares of 50p each. A further
300,000 shares were issued at full market price on 1 September 2013. Basic EPS for the year is:
Select one:
a. 39.2p
b. 37.7p
c. 75.5p
d. 78.4p
37.7p = 1.000.000/(2.400.000+300.000*10/12)
Câu 66 (ĐỀ PT): BC has 3,000,000 $1 ordinary shares in issue on 1 Feb 20x4. On 1 May 20x4 the
company issued convertible bonds for cash. If converted in 3 years’ time, the debt would result in an
increase of 1,250,000 ordinary shares. The liability element of the bonds is $895,000 and the effective
interest rate is 6.5%. Income tax is charged at 30%. Calculate the adjustment to earnings needed to
measure diluted EPS for the year ended 31 Jan 20x5?
Select one:
a. Increase of 43,631
b. Decrease of 30,542
c. Decrease of 43,631
d. Increase of 30,542
30,542 = 895.000*6.5%*(1-30%)*9/12
Câu 67 (ĐỀ PT): Earnings per share is calculated before accounting for which of the following items?
Select one:
a. Minority interest
b. Preference dividend for the period

c. Taxation
d. Ordinary dividend