For Purposes of Computing the Weighted-Average Number of Shares Outstanding

question 21

Multiple Choice

For purposes of computing the weighted-average number of shares outstanding during the year, a mid-year event that must be treated as occurring at the beginning of the year is the:

• A)Purchase of treasury stock.
• B)Sale of additional common shares.
• C)Issuance of stock warrants.
• D)Stock split.

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Definitions:

Market

A venue where buyers and sellers come together to exchange goods, services, or information, either physically or virtually.

Buyers and Sellers

Participants in a market where buyers exchange money for goods or services provided by sellers.

Market Prices

The existing rate at which one can buy or sell an asset or service.

Profit-Seeking

The motivation or strategy of businesses and individuals to increase their financial gains or profits.