XYZ Ltd Has 10 000 Ordinary Shares on Issue at 1

question 34

Multiple Choice

XYZ Ltd has 10 000 ordinary shares on issue at 1 July 2015 which is the beginning of its reporting period. On 1 May 2016, it issued a further 2000 ordinary shares for cash. The weighted average number of shares for use in the earnings per share calculation is:

• A) 10 000 shares
• B) 10 333 shares
• C) 11 000 shares
• D) 12 000 shares

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Definitions:

Corn

A cereal plant that yields large kernels on a cob, used for food for humans and livestock, and as a raw material in industry.

Linear

Pertaining to a straight-line relationship in mathematics or economics, often used to describe a direct proportionality between variables.

Substitutes In Production

Products that can be produced using the same resources or processes as another product, allowing producers to switch between them based on market demand or cost considerations.

Fixed Resources

Assets and inputs in the production process that cannot be easily increased or decreased in the short term, such as land and machinery.