Question 1

A business reports the following in its financial statements:
Revenues $1 800
Preference Dividend 400
Expenses 600
Assets 1 900
Liabilities 1 100
What is the times dividends earned ratio?

Accepted Answer

A)  4.50 times 
B)  2.25 times 
C)  1.80 times 
D)  3.00 times

Question 2

Explain and illustrate,with simple examples,both the usefulness and any possible dangers in using the:
 rate-of-returnon total assets ratio
 rate-of-returnon equity ratio 
times dividends earned ratio 
Why are these described as 'efficiency ratios'?

Accepted Answer

The answer of Explain and illustrate,with simple examples,both the usefulness...

Question 3

Which of the following is not a quantitative threshold for reporting segment information?

Accepted Answer

A)  Revenue 
B)  Investments 
C)  Profit 
D)  Assets

Question 4

AASB 8 'Operating Segments' requires entities to report:

Accepted Answer

A)  segments that correspond to internal management reports 
B)  segment information that is more consistent with other parts of their annual reports 
C)  more segment information in their interim financial statements 
D)  all of the above

Question 5

A company reports the following in relation to the year ended 30/6/2012:
$$\text { Number of ordinary shares issued at 1/7/2011 } \quad\quad10000$$
Number of preference shares issued
$$\text { \{paying an annual dividend of } \$ 2.00 \text { pershare\} }\quad\quad800$$
On 31/3/2012 a further 1000 ordinary shares were issued.
$$\text { Net profit from ordinary activities, after income tax } \quad\quad\quad\$ 20000$$
The company's basic earnings per share figure (to the nearest tenth of a cent)is:

Accepted Answer

A)  $1.95 
B)  $1.67 
C)  $2.00 
D)  $1.79

Exam 17: Financial Reporting: Segment Reporting and Highlights Statements

A business reports the following in its financial statements: Revenues $1 800 Preference Dividend 400 Expenses 600 Assets 1 900 Liabilities 1 100 What is the times dividends earned ratio?

Explain and illustrate,with simple examples,both the usefulness and any possible dangers in using the: rate-of-returnon total assets ratio rate-of-returnon equity ratio times dividends earned ratio Why are these described as 'efficiency ratios'?

Which of the following is not a quantitative threshold for reporting segment information?

AASB 8 'Operating Segments' requires entities to report: