The Number of Shares That a Corporation's Charter Allows It

question 51

Multiple Choice

The number of shares that a corporation's charter allows it to sell is referred to as:

• A)Issued stock.
• B)Outstanding stock.
• C)Common stock.
• D)Preferred stock.
• E)Authorized stock.

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Definitions:

Accounts Receivable

The money owed to a business by its customers for goods or services delivered but not yet paid for.

Fair Value Measurement

This is the estimation of the price at which an asset or liability could be exchanged in a current transaction between willing parties, other than in a liquidation sale.

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

FASB

The Financial Accounting Standards Board, an organization responsible for setting and improving financial accounting and reporting standards in the U.S.