The Authorization of Common Shares

question 39

Multiple Choice

The authorization of common shares

• A)must be approved by Canada Revenue Agency.
• B)does not require a journal entry.
• C)increases shareholders' equity.
• D)decreases shareholders' equity.

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Definitions:

Special Property Interest

A specific legal right or claim one has in property, distinguishing it from general ownership interests.

Identified Goods

In a sales transaction, goods that are specified and agreed upon by both the buyer and seller at the time a contract is entered into.

Specific Performance

A legal remedy in which a court orders a party to perform their contractual obligations rather than compensating the other party with money.

Equitable Remedy

A non-monetary judgment in law where a court orders a party to act or refrain from acting, aimed at providing fair resolution in cases where monetary damages are insufficient.