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Free ACCA Financial Reporting Practice Questions & Answers

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Question 121

Which of the following increases retained earnings?

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Question 122

Which of the following correctly describes other comprehensive income (OCI)?

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Question 123

What does it mean when a company's earnings per share (EPS) is negative?

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Question 124

Which of the following best describes the dividend cover ratio?

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Question 125

Which of the following is an example of a capital reserve?

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Question 126

A company reports total comprehensive income of 500,000 and pays dividends of 80,000. If opening equity was 2,200,000 and there were no share issues, what is closing equity?

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Question 127

Operating profit margin is calculated as:

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Question 128

Which of the following actions would INCREASE a company's equity?

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Question 129

Which of the following will directly reduce retained earnings?

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Question 130

Which of the following transactions increases the current ratio?

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Question 131

If a company buys back its own shares and cancels them, what is the effect on earnings per share?

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Question 132

Entity X has 1,000,000 shares in issue at 1 January. It issues 400,000 new shares on 1 July. What is the weighted average number of shares for EPS purposes?

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Question 133

A rights issue at a price below market value requires an adjustment for EPS purposes using a:

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Question 134

Diluted EPS differs from basic EPS in that it:

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Question 135

Return on capital employed (ROCE) can be improved by:

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Question 136

A company has net profit of 200,000 and equity of 1,600,000. Its ROE is:

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Question 137

Which of the following would improve net profit margin without changing revenue?

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Question 138

The gearing ratio measures:

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Question 139

Interest cover is calculated as:

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Question 140

Working capital is defined as:

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Question 141

The cash conversion cycle measures:

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Question 142

An entity has profit after tax of 500,000, and a revaluation gain (net of tax) of 60,000. What is total comprehensive income?

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Question 143

If an entity makes a bonus share issue (capitalisation issue), the effect on earnings per share is:

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Question 144

An entity has 2,000,000 shares in issue. Profit after tax is 480,000. It also has 100,000 convertible bonds, each convertible into 2 ordinary shares. After-tax interest saved if converted is 12,000. Calculate diluted EPS.

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Question 145

A company has revenue of 3,000,000, cost of sales 1,800,000, operating expenses 600,000, finance costs 100,000, and tax 125,000. Calculate operating profit margin.

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Question 146

What distinguishes a revenue reserve from a capital reserve?

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Question 147

An entity has: Basic EPS 50 cents; weighted average shares 1,000,000; profit 500,000; 200,000 options with exercise price 4.00; average market price 5.00. Diluted EPS:

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Question 148

A company has basic EPS of 40 cents. It has 500,000 share options outstanding with an exercise price of 2.00 per share. The average market price during the year was 2.50. How many dilutive shares are added for diluted EPS?

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Question 149

Which of the following would NOT improve a company's current ratio?

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Question 150

Entity A: Operating profit 500,000, Revenue 4,000,000, Total assets 5,000,000, Current liabilities 800,000. Calculate ROCE.

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Free ACCA Financial Reporting Practice Questions & Answers

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Thank you