CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 92 Discussion

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

Question #: 92
Topic #: 1

XYZ had 600,000 ordinary shares in issue on 1 July 20X4. On 1 January 20X5, the entity made a 1 for 2 bonus issue. The profit attributable to ordinary shareholders for the year ended 30 June 20X5 was $2,925,000.

What is the basic earnings per share for the year ended 30 June 20X5?

A$3.25

B$4.88

C$1.63

D$3.90

Show Suggested Answer

Suggested Answer: A

by Annice at Jul 10, 2024, 03:35 AM

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Brittney

1 months ago

I'm going to go with D) $3.90 on this one. It just feels right, you know? Plus, I'm feeling lucky today.

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Avery

1 months ago

Easy peasy! The bonus issue doubled the number of shares, so the earnings per share should be half of what it was before. That means the answer is C) $1.63.

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Luis

1 months ago

Hmm, this is tricky. I remember learning about bonus issues in my accounting class, but I can't quite remember how they affect EPS. I'll have to think about this one a bit more.

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Ayesha

2 days ago

B) $4.88

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Adell

14 days ago

I think the bonus issue might affect the number of shares outstanding, which would impact the EPS calculation.

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Leigha

15 days ago

B) $4.88

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Viola

20 days ago

A) $3.25

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Alease

1 months ago

A) $3.25

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Marleen

2 months ago

I'm not sure about this one. The question mentions a bonus issue, which means the number of shares increased, but the profit stayed the same. I'm going to go with C) $1.63.

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Buck

1 months ago

I agree, the bonus issue doesn't affect the profit, so it should be A) $3.25.

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Luis

2 months ago

I think the answer is A) $3.25.

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Elly

2 months ago

Okay, let's think this through step-by-step. If the shares doubled after the bonus issue, then the earnings should have doubled as well. That means the correct answer is B) $4.88.

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