CHAPTER 29

PAS 33
EARNINGS PER
SHARE

Members:
Acepcion, Jessa
Adornado, Michelle
Anacion, Sherlyn
1. EPS disclosures are required for
a. Entities whose ordinary shares and potential ordinary shares are publicly traded.
b. Entities that are in the process of issuing ordinary shares in the public market.
c. All entities.
d. Entities whose ordinary shares and potential ordinary shares are publicly traded and entities
that are in the process of issuing ordinary shares in the public market.

2. EPS disclosures are

a. Required for all public and nonpublic entities.
b. Required for public entities and encouraged for nonpublic entities.
c. Encouraged for public entities and required for nonpublic entities.
d. Encouraged for all entities.

3. Earnings per share shall be reported for all the following, except
a. Income from continuing operations
b. Income from discontinued operations
c. Net Income
d. Gross Income

4. In computing basic earnings per share, if the preference share is cumulative, the amount that
should be deducted as an adjustment to the numerator is the
a. Preference dividend in arrears
b. Preference dividends paid during the year
c. Annual preference dividend
d. Annual ordinary dividend

5. When an entity issues both consolidated and separate financial statements, the EPS information
is required
a. For both sets of financial statement
b. In neither set of financial statements
c. Only for consolidated financial statements
d. Only for separate financial statements

6. Where in the financial statements should basic and diluted EPS be reported
a. In accompanying notes.
b. In management discussion and analysis
c. In the income statement
d. In the statement of cash flow

7. An entity that reports a discontinued operation shall present basic and diluted earnings per
share for the discontinued operation
a. Only on the face of the income statement.
b. Only in the notes to financial statements.
c. Either in the face of the income statement or in the notes to financial statements.
 d. Only if the management choose to do so.

8. Earnings per share should be computed in the basis of

a. Preference shares
b. Voting ordinary shares
c. Voting and nonvoting ordinary shares
d. Voting ordinary shares and preference shares

9. Undeclared preference dividend is deducted from net income in the EPS computation for which
preference shares?
a. Noncumulative
b. Cumulative
c. Neither cumulative or noncumulative
d. Both cumulative and noncumulative

10. Earnings per share should always be reported for

a. Gross income
b. Income before tax
c. Income from continuing operations
d. Prior period error