Which of one of the following indicates the amount that can be claimed by the sh

Question

Which of one of the following indicates the amount that can be claimed by the shareholders on the assets of the company they own? 1. Assets 2. Liabilities 3. Equity 4. Revenues 5. Net Profit

Which one of the following represents the amount of the services of others consumed by a business? 1. Assets of the business 2. Liabilities of the business 3. Equity of the business 4. Revenues of the business 5. Expenses of the business
A company's equity may decrease when it increases its assets. True False
If an excessive amount of inventory is purchased during one accounting period, the business will suffer large amount of losses due to the purchase during the period. True False
The Income Statement of a business shows EBIT. Which one of the following is wrong about EBIT? 1. It stands for the Earnings before Interests and Taxes. 2. It is also called the Operating Profits. 3. It contains the amount of Interest Expenses and Tax Expenses in it. 4. It is the result of revenues minus all expenses of the business.

Which one of the following explains EPS (Earnings per share) most appropriately? 1. It is one of the expenses that must be presented in the Income Statement. 2. It is one of the expenses of a business. However, it does not have to be presented in the Income Statement. Companies optionally present it on the bottom of their Income Statement. 3. It is a financial index that presents the growth of net profit in a simple format. 4. It is a financial index that represents the amount of net profits per share of common stock. Which of one of the following indicates the amount that can be claimed by the shareholders on the assets of the company they own? 1. Assets 2. Liabilities 3. Equity 4. Revenues 5. Net Profit

Which one of the following represents the amount of the services of others consumed by a business? 1. Assets of the business 2. Liabilities of the business 3. Equity of the business 4. Revenues of the business 5. Expenses of the business
A company's equity may decrease when it increases its assets. True False
If an excessive amount of inventory is purchased during one accounting period, the business will suffer large amount of losses due to the purchase during the period. True False
The Income Statement of a business shows EBIT. Which one of the following is wrong about EBIT? 1. It stands for the Earnings before Interests and Taxes. 2. It is also called the Operating Profits. 3. It contains the amount of Interest Expenses and Tax Expenses in it. 4. It is the result of revenues minus all expenses of the business.

Which one of the following explains EPS (Earnings per share) most appropriately? 1. It is one of the expenses that must be presented in the Income Statement. 2. It is one of the expenses of a business. However, it does not have to be presented in the Income Statement. Companies optionally present it on the bottom of their Income Statement. 3. It is a financial index that presents the growth of net profit in a simple format. 4. It is a financial index that represents the amount of net profits per share of common stock. Which of one of the following indicates the amount that can be claimed by the shareholders on the assets of the company they own? 1. Assets 2. Liabilities 3. Equity 4. Revenues 5. Net Profit

Which one of the following represents the amount of the services of others consumed by a business? 1. Assets of the business 2. Liabilities of the business 3. Equity of the business 4. Revenues of the business 5. Expenses of the business Which one of the following represents the amount of the services of others consumed by a business? 1. Assets of the business 2. Liabilities of the business 3. Equity of the business 4. Revenues of the business 5. Expenses of the business
A company's equity may decrease when it increases its assets. True False A company's equity may decrease when it increases its assets. True False
If an excessive amount of inventory is purchased during one accounting period, the business will suffer large amount of losses due to the purchase during the period. True False If an excessive amount of inventory is purchased during one accounting period, the business will suffer large amount of losses due to the purchase during the period. True False
The Income Statement of a business shows EBIT. Which one of the following is wrong about EBIT? 1. It stands for the Earnings before Interests and Taxes. 2. It is also called the Operating Profits. 3. It contains the amount of Interest Expenses and Tax Expenses in it. 4. It is the result of revenues minus all expenses of the business. The Income Statement of a business shows EBIT. Which one of the following is wrong about EBIT? 1. It stands for the Earnings before Interests and Taxes. 2. It is also called the Operating Profits. 3. It contains the amount of Interest Expenses and Tax Expenses in it. 4. It is the result of revenues minus all expenses of the business.

Which one of the following explains EPS (Earnings per share) most appropriately? 1. It is one of the expenses that must be presented in the Income Statement. 2. It is one of the expenses of a business. However, it does not have to be presented in the Income Statement. Companies optionally present it on the bottom of their Income Statement. 3. It is a financial index that presents the growth of net profit in a simple format. 4. It is a financial index that represents the amount of net profits per share of common stock. Which one of the following explains EPS (Earnings per share) most appropriately? 1. It is one of the expenses that must be presented in the Income Statement. 2. It is one of the expenses of a business. However, it does not have to be presented in the Income Statement. Companies optionally present it on the bottom of their Income Statement. 3. It is a financial index that presents the growth of net profit in a simple format. 4. It is a financial index that represents the amount of net profits per share of common stock.

Explanation / Answer

Question - 1

Option - 3 ............ Equity

The term equity represents the claims of shareholders which includes, share capital, excess paid in capital and retained earnings.

Question - 2

Option - 5 ............ Expenses of Business

When business receives a service from others ...... like building for office establishments - expenses is rent. When services of experts are used for business - salary expenses. so on.

Question - 3

False

Equity increases or decreases due to revenues and expenses or further issue of shares.

Question - 4

False

Excessive purchases are carried forward to subsequent year as Inventory.

Question - 5

Option - 4. It is the result of revenues minus all expenses of the business

Interest expenses and tax expenses are not yet deducted from EBIT

Question - 6

Option - 4  It is a financial index that represents the amount of net profits per share of common stock.

Kindly rate the answer ......... all the best.

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