QQuestionAccounting
QuestionAccounting
The following data were reported by a corporation:
Authorized shares: 39,000
Issued shares: 34,000
Treasury shares: 13,000
The number of outstanding shares is:
A. 39,000
B. 21,000
C. 26,000
D. 52,000
E. 34,000
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Answer
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Step 1Let's solve this step by step:
Step 2: Understand the definitions
- Authorized shares: The maximum number of shares a company can issue according to its corporate charter - Issued shares: The total number of shares that have been issued by the company - Treasury shares: Shares that have been repurchased by the company from shareholders - Outstanding shares: Shares that are currently held by shareholders (not including treasury shares)
Final Answer
Key Insight: Outstanding shares represent the number of shares currently in the hands of shareholders, excluding shares repurchased by the company (treasury shares).
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