Which of the Following Statements Is True in Accordance with IAS

question 30

Multiple Choice

Which of the following statements is true in accordance with IAS 33?

• A)If a bonus or rights issue is made at the prevailing market price of the shares, then there is no bonus element in the issue.
• B)An entity is required to disclose earnings per share even though a loss has been made for the period.
• C)All reporting entities are required to disclose earnings per share and diluted earnings per share in the notes to the accounts.
• D)An entity is required to disclose earnings per share on the face of the statement of comprehensive income.

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Definitions:

Sales

Revenue generated from goods or services sold by a company in a specific period.

COGS

Short for Cost of Goods Sold, it represents the direct costs attributable to the production of the goods sold by a company.

Factoring Costs

Expenses associated with selling accounts receivable to a third party, commonly referred to as a factor, to improve cash flow.

Accounts Receivable

Accounts receivable refers to the money owed to a company by its customers or clients for goods or services delivered but not yet paid for.