MGT401 Final Term Subjective Set 2

All Final Term Past Papers Solved Subjective by

BIYA Ahmad

1. Data was given and we have to find diluted EPS? (5) Diluted EPS is a performance metric used to gauge the quality of a company'searnings per share (EPS) if all convertible securities were exercised. Convertible securities are all outstanding convertible preferred shares, convertible debentures, stock options (primarily employee-based) and warrants
2. One question was about to write the section that is applied in share issued at premium, at discount, at capital? (3)
3. Issued shares is a term of law and finance for the number of shares of a corporation which have been allocated (allotted) and are subsequently held by shareholders. The act of creating new issued shares is called issuance, allocation or allotment
4. the amount by which the amount received by a company for a stock issue exceeds its face value
5. At a discount specifically refers to stock that is sold for less than its nominal or par value. At a discountalso refers to stocks or other securities that are sold below the present market value, similar to a sale on goods at a retail establishment
6. the part of the capital of a company that comes from the issue of share

7.

8. What provision reduce asset? (3) IAS37

Q9. One question was about to write disclosure requirement of revenues, IAS 18?

What is revenue 3 marks

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise

Find value premium 3 marks

In investing, value premium refers to the greater risk-adjusted return of value stocks over growth stocks

Selling cost 3 example 3 marks Selling expense (or sales expense) includes any costs incurred by the sales department. These costs typically include the following: Salesperson salaries and wages. Sales administrative staff salaries and wage

Share capital 5 marks

the part of the capital of a company that comes from the issue of shares

Contingent liabilities 5 marks

A contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event. A contingent liability is recorded in the accounting records if the contingency is probable and the amount of the liability can be reasonably estimated

Future value find 3 marks

Future value is the value of an asset at a specific date. It measures the nominalfuture sum of money that a given sum of money is "worth" at a specified time in thefuture assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function

Difference financing and investing activities 3 marks

Questions Find Eps

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. calculated as = net income-dividend preffered stock/average outstanding shares Find compound value

Is ways to calculate Future Value (FV)

1. For an asset with simple annual interest: = Original Investment x (1+(interest rate*number of years))
2. For an asset with interest compounded annually: = Original Investment x ((1+interest rate)^number of years)

Operating activity

2. These are the company's core business activities, such as manufacturing, distributing, marketing and selling a product or service. Operating activities should generally provide the majority of a company's cash flow and largely determine whether a company is profitable

Operating lease Operating lease is a contract wherein the owner, called the Lessor, permits the user, called the Lesse, to use of an asset for a particular period which is shorter than the economic life of the asset without any transfer of ownership rights

Accounting policy Accounting policies are the specific principles, rules and procedures implemented by a company's management team and are used to prepare its financial statements. These include any methods, measurement systems and procedures for presenting disclosures

Contents of prospectus (i) It is a document issued as a prospectus; (ii) It is an invitation to the member of the

... (v) It is a document by which the companyprocures its share capital needed to carry on its activities

Interst revenue and borrowing cost