1.
You are supplied with the following extract from Niton plc’s statements of
financial position at 31 January 20X9 and 20X8.
31 January 20X9 31 January 20X8
£m £m
Equity shares of £1 each 120 100
Share premium 260 220
Notes
1 On 1 July 20X8 there was a 1 for 10 bonus issue.
2 On 30 September 20X8 there was a rights issue.
3 There are no other reserve balances.
Requirement
What was the total amount received from the issue of shares for the year ended 31
January 20X9?
A £10m
B £20m
C £50m
D £60m
2. The figure for equity in an IAS 1 statement of financial position is represented
by:
A Called-up share capital plus share premium
B Total assets less current liabilities
C Paid share capital plus retained earnings
D Total assets less total liabilities
3. Which two of the following transactions could affect a company’s retained
earnings for the reporting period?
A Rights issue of shares
B Transfer to other reserves
C Purchase of land
D Repayment of debentures at their par value
E Increase in income tax due to HMRC
4. Munch Co is a fast food retailer. One of its customers has started a legal claim
for damages after contracting food poisoning at a Munch Co restaurant.
Munch Co’s lawyers believe that there is a 70% chance that the claim will be
successful and they estimate that the award to the customer will be £90,000.
Requirement
Which of the following statements is correct?
A Munch Co should not create a provision because payment of damages is
not certain.
B Munch Co should create a provision for 70% of the expected award of
£90,000.
C Munch Co should create a provision for the full amount of the expected
award of £90,000.
D Munch Co should create a provision for £90,000 plus an additional amount
in case other
claimants launch similar legal claims.
5. In the year to 31 December 20X6, Coisty had the following capital structure:
£
400,000 equity shares of 25p each 100,000
Share premium account
50,000
During the year, Coisty paid an equity dividend of 45p per share.
Requirement
What is the total dividend paid?
A £67,500
B £180,000
C £45,000
D £270,000
