A company was formed on 1 March 2018 with an authorized capital of OMR 5 million divided into common stock of OMR1 each. The company came up with an Initial Public Offer IPO by issuing 3 million equity shares at OMR 1.300 each. The amount of Share premium account to be shown on the balance sheet at the end of the year 31st December 2018 assuming that IPO is fully subscribed by the public:

a.

OMR3,000,000

b.

OMR4,000,000

c.

OMR3,900,000

d.

OMR900,000

ABC Company has 2000 stocks of 15% OMR 1 face value preferred stock outstanding at December 31, 2019. At December 31, 2019, the board of directors declared a preference dividend for the year 2019. The company did not distribute any dividend for the year 2017 and 2018. Assuming that if the preference share is non-cumulative, the amount of dividend to be payable to Preference shareholder for the year 2019 is

a.

OMR 300

b.

OMR 600

c.

Dividend should not be paid in the year 2019

d.

OMR 900

PQR SAOG issues 1,000,000 7% Redeemable preference stock with a par value of OMR1 at a premium of OMR0.200 on 1st Jan 2019. Which of the following is TRUE for credit entry?

a.

Share premium OMR200,000

b.

7% redeemable preference shares account with OMR1,200,000

c.

Bank account with OMR1,200,000

d.

Bank account with OMR1,000,000

ABC Company had 1 million ordinary shares of OMR 1 each at the end of the year 2019. The company earns profit before tax during the year was OMR 500,000. The rate of tax was 20%. The earning per share of the company was

a.

0.4

b.

1

c.

1.400

d.

0.5

PQR SAOG in Oman has issued and paid up capital of OMR 2 million OMR 1 par value common stock. The current market price of each share is OMR 3. The company board decided a 4 for 1 reverse stock split. The Market value of per share after reverse stock split should be

a.

0.750

b.

12

c.

1.250

d.

2.500