On 1 January 2021, the Beginning of the Reporting Period

question 7

Multiple Choice

On 1 January 2021, the beginning of the reporting period, Jupiter Ltd has 50 000 ordinary shares on issue. On 30 June 2021, Jupiter Ltd issued a further 20 000 ordinary shares for cash. On 1 November 2021, Jupiter Ltd repurchased 2 400 shares at fair value in a market transaction. The weighted average number of shares for use in the earnings per share calculation is:

• A) 60 000 shares.
• B) 70 000 shares.
• C) 60 400 shares.
• D) 72 400 shares.

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Definitions:

Law of Immediate Reinforcement

A principle stating that a behavior is more likely to be repeated if it is followed immediately by a positive reinforcement.

Contingent Reinforcement

A behavioral strategy that delivers rewards or consequences based on the occurrence of specific behaviors, aiming to modify those behaviors.

Positive Reinforcement

A psychological concept involving the addition of a rewarding stimulus following a desired behavior to increase the likelihood of its recurrence.

Punishment

Discourages a behaviour by making an unpleasant consequence contingent on its occurrence.