ABC Ltd Has 21 000 Ordinary Shares on Issue at 1

question 1

Multiple Choice

ABC Ltd has 21 000 ordinary shares on issue at 1 January 2015 which is the beginning of its reporting period. On 30 June 2015, it issued a further 2000 ordinary shares for cash. On 1 November 2015, ABC Ltd repurchased 600 shares at fair value in a market transaction.
The weighted average number of shares for use in the earnings per share calculation is:

• A) 21 000 shares
• B) 21 700 shares
• C) 21 900 shares
• D) 22 400 shares

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Definitions:

Opportunity Cost

The worth of the most favorable option given up when a choice is made.

Taco

A traditional Mexican dish consisting of a small hand-sized tortilla topped with a filling.

Burrito

A Mexican-inspired dish consisting of a large wheat flour tortilla wrapped or folded around a filling that typically includes meat, beans, rice, cheese, and vegetables.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing one option over another.