The Calculation to Determine the Number of Outstanding Shares of Stock

question 121

Multiple Choice

The calculation to determine the number of outstanding shares of stock is the number of:

• A)treasury stock shares plus number of issued shares.
• B)authorized shares minus number of issued shares.
• C)issued shares minus number of treasury shares.
• D)authorized shares minus treasury shares.

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Definitions:

Journalize

The process of recording financial transactions in a company's journal, the first step in the accounting cycle that chronicles all financial activities.

Factory Overhead Rate

The total indirect manufacturing costs associated with production, allocated over a specific base such as labor hours or machine hours.

Machine Hours

A measure of production time used in cost accounting to allocate costs to products or services based on the time they spend being processed on a machine.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor, such as utilities, depreciation, and maintenance of equipment.