If a Company Has 75,000 Shares of Treasury Stock, 520,000

question 7

Multiple Choice

If a company has 75,000 shares of treasury stock, 520,000 shares outstanding, and 1,500,000 shares authorized, how many shares are issued?

• A) 500,000
• B) 75,000
• C) 520,000
• D) 595,000

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Definitions:

Unlimited Life

An accounting concept referring to corporations that continue to exist irrespective of the status or continuity of their owners.

Legal Liability

The legal responsibility to settle financial debts or obligations resulting from lawsuits or breaches of contract.

Business Entities

Organizations established as separate legal entities for the purpose of conducting business, such as corporations, partnerships, and sole proprietorships.

Sole Proprietorship

A business structure where the business is owned and operated by a single individual, who bears unlimited liability.