A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 23 - 24 of 50

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Question 23

Question

MCQ▾

ABC Company has paid annual dividends of \$ 40,000. The beginning outstanding stock was 8000 and the ending outstanding stock was 14000. Calculate DPS of ABC Company?

Choice (4)

a.

3.46

b.

3.48

c.

3.64

d.

6.72

c.

Explanation

In this question, we can go for a simple average to find out the average outstanding shares.

The beginning outstanding stock was 8000 and the ending was 14000.

Using the simple average, we get the average outstanding stock as

The annual dividends paid were \$ 40,000.

Using the DPS formula, we get –

Question 24

Question

Match List-Ⅰ List-Ⅱ▾

Match the following activities of cash flow

 List-Ⅰ List-Ⅱ (A)Payment of dividends (i)Investing activities (B)Purchase of fixed assets (ii)Investing activities (C)Repayment of bank loan (iii)Financing activities (D)Interest received (iv)Financing activities

Choice (4)
• (A)
• (B)
• (C)
• (D)

a.

• (iv)
• (ii)
• (iii)
• (i)

b.

• (i)
• (iii)
• (ii)
• (iv)

c.

• (iv)
• (i)
• (iii)
• (ii)

d.

• (iv)
• (iii)
• (i)
• (ii)