Authorized Shares of a Corporation

question 80

Multiple Choice

Authorized shares of a corporation

• A)reflect the initial capital needs of the company.
• B)increase shareholders' equity.
• C)are specified in its articles of incorporation.
• D)must be recorded by a formal accounting entry.

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Definitions:

Desired Ending Inventory

The amount of inventory a business plans to have on hand at the end of a specific period, often used for planning production or purchasing.

Sales Budget

A detailed schedule showing expected sales expressed in both dollars and units.

Credit Sales

Sales made on credit, where payment is received after the goods or services are delivered.

Cash Sales

Transactions where the purchase of goods or services is paid for with cash at the time of sale.