Question
A company reports an Earnings Before Interest and Tax
(EBIT) of ₹6,00,000. It pays annual interest of ₹1,00,000 on its borrowings. The applicable corporate tax rate is 30%. The company has 50,000 equity shares outstanding. You are required to calculate the Earnings Per Share (EPS).Solution
EBT = EBIT − Interest = ₹6,00,000 − ₹1,00,000 = ₹5,00,000 Tax = 30% of ₹5,00,000 = ₹1,50,000 EAT = ₹5,00,000 − ₹1,50,000 = ₹3,50,000 EPS = EAT / Number of Equity Shares = ₹3,50,000 / 50,000 = ₹7 per share
Which of the following is a primary objective of auditing?
An auditor's sample for test of controls is least likely to be designed to:
Which of the following is an example of an inherent limitation of an audit?
The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated is known as:
Why must auditors obtain an understanding of internal control even if they do not intend to rely on it?
An audit conducted between two annual audits is known as a:
Which balance is least suited to positive confirmation?
Which auditing standard outlines the auditor's responsibilities relating to fraud in an audit of financial statements?
‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of:
Which of the following financial statements can be prepared using a receipt and payment account?
