In Calculating the Weighted Average of Common Shares Outstanding, When

question 27

Multiple Choice

In calculating the weighted average of common shares outstanding, when a stock dividend or stock split occurs, the additional shares are

• A) ignored.
• B) weighted by the number of months outstanding.
• C) considered outstanding at the beginning of the year.
• D) considered outstanding at the beginning of the earliest year reported.

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Definitions:

Ownership

The legal right or state of having full control and possession over property, assets, or an entity.

Ethics Competency

The ability to recognize ethical issues, make reasoned ethical judgments, and implement decisions in a manner consistent with established ethical standards.

Stakeholder Ethics

The principles and standards that guide how a business should act towards its stakeholders to be considered ethical.

Johnson and Johnson

A multinational corporation known for producing pharmaceuticals, medical devices, and consumer packaged goods.