Day: February 15, 2021

A company’s published Profit and Loss Account gives the following information:

• operating profit  —  £4,000M
• interest expense  —  £200M
• taxation  —  £1,150M
• ordinary dividends  —  £1,200M

What is the profit figure to be used in the calculation of earnings per ordinary share?

Select ONE answer:

1. £1,150 million
2. £2,350 million
3. £2,650 million
4. £3,800 million 

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – £4,000M – £200M – £1,150M
4. Not correct

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