Quizific | Calculating Basic Earnings Quiz

A company issued a £10m 4% Bond on 1 January 2005, the start of its financial year. It paid the first half-year's interest on 1 July 2005, the second half-year on 1 January 2006. What will be the total of 'interest payable' to be shown in the profit and loss account to 31 December 2005? Income tax rates are currently 20%.

£160,000

£320,000

£200,000

£400,000

Which one of the following is an example of expenditure which, although included within the profit and loss account, might be disallowable for taxation purposes?

Insurance for delivery vehicles

Fuel for delivery vehicles

Repairs to delivery vehicles

Speeding fines relating to delivery vehicles

'Accelerated capital allowances' refers to a situation when:

government allowances used when calculating depreciation for tax purposes are more generous in the earlier years of an asset's life than the company's own depreciation charge.

government allowances used when calculating depreciation for tax purposes are less generous in the earlier years of an asset's life than the company's own depreciation charge.

government allowances used when calculating depreciation for tax purposes are the same as the company's own depreciation charge.

the Government makes no taxation allowance for the purchase of assets.

A 'minority interest' exists when:

a parent company owns all the shares in a subsidiary company.

one company owns only 15% in another company.

a parent company own less than 100% of the shares in a subsidiary company.

an individual owns shares in a company which is the associate of another company.

'Minority Interests' must be split between:

equity and non-equity interests.

minority and majority interests.

subsidiary and associated interests.

permanent and timing interests.

Which one of the following is not part of a company's 'equity capital'?

Ordinary shares

Preference shares

Voting shares

Equity shares

Which one of the following is sometimes referred to as the 'bottom line' by financial commentators?

Profit after interest and taxation

Profit after interest but before taxation

Profit before interest and taxation

Retained profit for the year

The first dividend to be paid in a financial year is usually the:

proposed final dividend of the current year.

interim dividend of the current year.

proposed final dividend of the previous year.

interim dividend of the previous year.

In calculating basic earnings per share, which one of the following 'weighted average' figures is used in the formula?

The number of ordinary shares outstanding during the period

The number of ordinary shares outstanding since the company's formation

The total number of shares outstanding during the period

The authorised ordinary share capital during the period

In calculating basic earnings per share, net profit or loss is included in the formula after all but one of the following are deducted. Which one?

Taxation

Minority Interests

Preference Dividends

Ordinary dividends