4. An ordinary share a. Is an equity instrument that is subordinate to all other classes of equity instrument b. Is a financial instrument or other contract that may entitle its holder to ordinary shares c. Is a financial instrument that gives the holder the right to purchase ordinary shares d. Is any contract that gives rise to both financial asset of one entity and a financial liability or equity instrument of another entity 5. In computing basic earnings per share, the full amount of the required preference dividends on cumulative preference shares for the period shall be a. Ignored b. Deducted from net income only when declared c. Deducted from net income whether declared or not d. Added to net income whether declared or not 6. It is a financial instrument or other contract that may entitle its holder to ordinary shares a. Ordinary share b. Preference share c. Equity instrument d. Potential ordinary share
4. An ordinary share a. Is an equity instrument that is subordinate to all other classes of equity instrument b. Is a financial instrument or other contract that may entitle its holder to ordinary shares c. Is a financial instrument that gives the holder the right to purchase ordinary shares d. Is any contract that gives rise to both financial asset of one entity and a financial liability or equity instrument of another entity 5. In computing basic earnings per share, the full amount of the required preference dividends on cumulative preference shares for the period shall be a. Ignored b. Deducted from net income only when declared c. Deducted from net income whether declared or not d. Added to net income whether declared or not 6. It is a financial instrument or other contract that may entitle its holder to ordinary shares a. Ordinary share b. Preference share c. Equity instrument d. Potential ordinary share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4. An ordinary share
a. Is an equity instrument that is subordinate to all other classes of equity instrument
b. Is a financial instrument or other contract that may entitle its holder to ordinary shares
c. Is a financial instrument that gives the holder the right to purchase ordinary shares
d. Is any contract that gives rise to both financial asset of one entity and a financial liability or equity instrument of
another entity
5. In computing basic earnings per share, the full amount of the required preference dividends on cumulative preference
shares for the period shall be
a. Ignored
b. Deducted from net income only when declared
c. Deducted from net income whether declared or not
d. Added to net income whether declared or not
6. It is a financial instrument or other contract that may entitle its holder to ordinary shares
a. Ordinary share
b. Preference share
c. Equity instrument
d. Potential ordinary share
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