1- Mississauga Mining Co. made a net income of $25 million in 2007, after the deduction of amortization expense of $8 million, interest of $5 million and taxes of $10 million. During 2007, it issued new shares for $15 million and used the proceeds to repay loans of $10 million; the remainder went into the banks current account. The retained earnings brought forward at the start of 2007 were $60 million. There were 125,000 ordinary shares in issue at the end of 2007. The earnings per share were *

a) $520

b) $480

c) $400

d) $200

e) none of the above

2- Blackfly Ltd. had an outstanding current liability for unpaid labour at the start of year 2007 of $10,000. During the year the company paid $300,000 for direct labour. At the end of the year the company still owed a $2,000 performance bonus to one employee. The amount the company would report as labour expense for 2007 is *

a) $312,000

b) $302,000

c) $300,000

d) $292,000

e) none of the above

3- Accounts receivable should be valued in the balance sheet at *

a) the expected collectible amount

b) the face value of the invoiced goods

c) the cost of the goods sold

d) the cost of the goods sold, plus a standard markup percentage

e) none of the above

4- An asset that the company owns, but that has no physical form, is

a) a waste of money

b) an intangible asset

c) a goodwill

d) not an asset; it is a liability

e) none of the above