CIMAPRA19-F02-1 Exam - Topic 1 Question 72 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 72
Topic #: 1

On 1 January 20X4 JK had 1,500,000 ordinary shares in issue. On 1 September 20X4JKissued 600,000 ordinaryshares at the market value of $2.50a share. For the financial year ended 31 December 20X4 the statement of profit or loss showsprofit before tax of $625,000 and profit after tax of $500,000.

What is the earnings per share for the year ended 31 December 20X4?

A23.8 cents

B36.8 cents

C26.3 cents

D29.4 cents

Show Suggested Answer

Suggested Answer: A, B

by Virgie at Jul 27, 2023, 03:44 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Billi

5 months ago

Not so sure about that, could be option D too!

upvoted 0 times

...

Chantay

5 months ago

I agree, B seems right based on the figures.

upvoted 0 times

...

Leah

5 months ago

Wait, how do we get to that number?

upvoted 0 times

...

Cecily

5 months ago

I think it's definitely option B!

upvoted 0 times

...

Tayna

6 months ago

Earnings per share calculation is key here!

upvoted 0 times

...

Susy

6 months ago

I feel like I might be mixing up the calculations. Was it profit before tax or after tax that we used for EPS? I hope I remember it right!

upvoted 0 times

...

Stephen

6 months ago

If I remember correctly, we had a similar practice question where we had to adjust for shares issued during the year. I think we should average the shares.

upvoted 0 times

...

Chara

6 months ago

I think we need to take the profit after tax and divide it by the total number of shares at the end of the year, but I can't recall the exact number of shares.

upvoted 0 times

...

Noel

6 months ago

I remember we calculated earnings per share in class, but I'm not sure if we included the new shares issued in the average calculation.

upvoted 0 times

...

Sarah

6 months ago

Okay, I've got a strategy for this. I'll navigate to the /dev/disk/by-uuid directory and list out the contents to see the available UUIDs.

upvoted 0 times

...

Maybelle

7 months ago

Okay, let me think this through. The question is asking for three runtime metrics, so I'll need to identify the options that fit that criteria. I'll make sure to read each one carefully.

upvoted 0 times

...

Golda

11 months ago

Wait, what? Earnings per share? I thought this was a bake-off competition. Time to whip up some delicious financial statements!

upvoted 0 times

...

Eileen

11 months ago

I bet the answer is 'all of the above' and they're just trying to see if we can spot the trick. Gotta keep my wits about me!

upvoted 0 times

Florinda

9 months ago

C) 26.3 cents

upvoted 0 times

...

Eura

10 months ago

Let's do the math and figure out the correct answer.

upvoted 0 times

...

Elbert

10 months ago

B) 36.8 cents

upvoted 0 times

...

Ines

10 months ago

I don't think it's all of the above, maybe we should calculate it.

upvoted 0 times

...

Man

10 months ago

A) 23.8 cents

upvoted 0 times

...

Patria

12 months ago

Hold on, is this a trick question? The numbers seem a bit too perfect. Maybe they're trying to lure us into a trap!

upvoted 0 times

Jamie

10 months ago

D) 29.4 cents

upvoted 0 times

...

Christiane

10 months ago

I'm going with C, the numbers make sense to me.

upvoted 0 times

...

Aileen

10 months ago

C) 26.3 cents

upvoted 0 times

...

Mariko

10 months ago

No, I don't think it's B. A seems more likely.

upvoted 0 times

...

Beth

10 months ago

B) 36.8 cents

upvoted 0 times

...

Sonia

10 months ago

I think it's A too, the numbers do seem too perfect.

upvoted 0 times

...

Helaine

10 months ago

A) 23.8 cents

upvoted 0 times

...

Pauline

10 months ago

I'm not sure about C, maybe it's a trick question after all.

upvoted 0 times

...

Leonora

11 months ago

C) 26.3 cents

upvoted 0 times

...

Zena

11 months ago

I think it's A too, the numbers do seem too perfect.

upvoted 0 times

...

Quiana

11 months ago

A) 23.8 cents

upvoted 0 times

...

Keneth

12 months ago

Ah, the classic 'what's the EPS' question. Better brush up on my financial accounting, or I'll be singing the blues on this one.

upvoted 0 times

...

Nan

1 year ago

I'm not sure, but I believe it's 23.8 cents.

upvoted 0 times

...

Brynn

1 year ago

Hmm, looks like we need to calculate the weighted average of the shares to get the correct earnings per share. Let's see, where's my calculator?

upvoted 0 times

Elenora

10 months ago

Allene: Yes, I found it. Let's calculate the earnings per share now.

upvoted 0 times

...

Scot

10 months ago

User 3: So, did you find your calculator to do the calculations?

upvoted 0 times

...

Allene

11 months ago

User 2: Yeah, that's right. It's an important step in determining the EPS.

upvoted 0 times

...

Candra

12 months ago

User 1: I think we need to calculate the weighted average of the shares to get the correct earnings per share.

upvoted 0 times

...

Filiberto

1 year ago

I calculated it to be 29.4 cents.

upvoted 0 times

...

Sabina

1 year ago

I think the earnings per share is 26.3 cents.

upvoted 0 times

...