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Chapter 14
Book Value per Share
NAME: Date:
Professor: Section: Score:
QUIZ:
1. Which of the following is incorrect when computing for preference shareholders’ equity for
purposes of book value per share computation?
a. The liquidation value or, in the absence thereof, the aggregate par value is allocated to the
preference shareholders’ equity.
b. If the preference shares are cumulative, all dividends in arrears are allocated.
c. If the preference shares are noncumulative, only the current year dividend is allocated.
d. If there are no dividends in arrears, only one-year dividends are allocated to the preference
shareholders’ equity.
2. The numerator used in the computation of book value per share is
a. market value of net assets
b. carrying amount of net assets
c. total outstanding shares
d. authorized capitalization
3. The denominator used in the computation of book value per share is
a. number of outstanding shares
b. weighted average outstanding shares
c. number of issued shares
d. number of authorized shares
4. Which of the following is excluded when computing for the number of shares outstanding?
a. outstanding shares
b. subscribed but unpaid shares
c. issued shares
d. treasury shares
5. Which of the following is incorrect when computing for book value per share when there are fully
participating preference shares?
a. The ordinary shareholders’ equity is allocated the aggregate par value and one-year dividend in
arrears before participation by the participating classes of shares.
b. The amount subject to participation is allocated to the participating preference shares and
ordinary shares based on aggregate par values.
c. Only the participating preference shares and ordinary shares share on the amount subject to
allocation.
d. Ordinary shares are not entitled to participate in any excess net assets.
6. Boe Corporation's stockholders' equity at December 31, 2008 was as follows:
6% noncumulative preference shares, ₱100 par (liquidation value ₱105 per share) 1,000,000
Ordinary shares, ₱100 par 3,000,000
Retained earnings 950,000
Chapter 14
Book Value per Share
NAME: Date:
Professor: Section: Score:
QUIZ:
1. Which of the following is incorrect when computing for preference shareholders’ equity for
purposes of book value per share computation?
a. The liquidation value or, in the absence thereof, the aggregate par value is allocated to the
preference shareholders’ equity.
b. If the preference shares are cumulative, all dividends in arrears are allocated.
c. If the preference shares are noncumulative, only the current year dividend is allocated.
d. If there are no dividends in arrears, only one-year dividends are allocated to the preference
shareholders’ equity.
2. The numerator used in the computation of book value per share is
a. market value of net assets
b. carrying amount of net assets
c. total outstanding shares
d. authorized capitalization
3. The denominator used in the computation of book value per share is
a. number of outstanding shares
b. weighted average outstanding shares
c. number of issued shares
d. number of authorized shares
4. Which of the following is excluded when computing for the number of shares outstanding?
a. outstanding shares
b. subscribed but unpaid shares
c. issued shares
d. treasury shares
5. Which of the following is incorrect when computing for book value per share when there are fully
participating preference shares?
a. The ordinary shareholders’ equity is allocated the aggregate par value and one-year dividend in
arrears before participation by the participating classes of shares.
b. The amount subject to participation is allocated to the participating preference shares and
ordinary shares based on aggregate par values.
c. Only the participating preference shares and ordinary shares share on the amount subject to
allocation.
d. Ordinary shares are not entitled to participate in any excess net assets.
6. Boe Corporation's stockholders' equity at December 31, 2008 was as follows:
6% noncumulative preference shares, ₱100 par (liquidation value ₱105 per share) 1,000,000
Ordinary shares, ₱100 par 3,000,000
Retained earnings 950,000
