Which of the Following Statements Is True

question 57

Multiple Choice

Which of the following statements is true?

• A) The number of shares provided for in the articles of incorporation is called authorized shares.
• B) A corporation may not repurchase its own shares after they have been issued.
• C) A corporation may vote its treasury stock.
• D) The corporation must sell all of the authorized stock.

---

Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies, typically through ownership of a substantial share of voting stock.

IFRS

International Financial Reporting Standards, which are accounting standards issued by the International Accounting Standards Board (IASB) for financial reporting globally.

Equity Method

An accounting technique used in consolidating the financial statements of entities in which an investment has been made and significant influence is held.

Subsidiary Company

A company that is completely or majority-owned by another corporation, known as the parent company.