For Purposes of Computing the Weighted-Average Number of Shares Outstanding

question 33

Multiple Choice

For purposes of computing the weighted-average number of shares outstanding during the year,a midyear event that must be treated as occurring at the beginning of the year is the

• A) declaration and issuance of a stock dividend.
• B) purchase of treasury stock.
• C) sale of additional common stock.
• D) issuance of stock warrants.

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Definitions:

Term Deposit

A bank deposit that has a fixed term and typically offers a higher interest rate than savings accounts.

Credit Union

A member-owned financial cooperative that provides traditional banking services.

Simple Interest

Interest calculated only on the principal amount, or the original sum of money borrowed or invested, without considering the effect of compounding over time.

Obligations

Duties or commitments that require an individual or organization to act in a certain manner, often legally binding.