Accounting Online Program Certification Practice Test

How many equity shares did Fara plc issue in 20X2?

1. 200,000

2. 250,000

3. 300,000

4. 100,000

The correct answer is: 200,000

To determine how many equity shares Fara plc issued in 20X2, one must examine the relevant financial statements or disclosures made within that fiscal year. The number of shares issued can typically be found in the company's statement of changes in equity or the notes accompanying the financial statements. It may also be reported in the statement of cash flows if equity financing occurred during that period. If the provided answer indicates that Fara plc issued 200,000 equity shares in 20X2, this suggests that this figure reflects the formal records or internal reports documenting the equity financing activities carried out during that specific year. Often, companies will disclose share issuance details to keep investors and stakeholders informed about changes in ownership structure and capital raising efforts. This number could have been determined through direct issuance to raise capital, employee stock options exercised, or other forms of equity transactions that year. The primary goal of such disclosures is to enhance transparency regarding the capital structure and equity base of the company, which is crucial for assessing financial health and investment potential.