For Purposes of Computing the Weighted Average Number of Shares

question 28

Multiple Choice

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

• A)Purchase of treasury stock.
• B)Declaration and issuance of stock dividend.
• C)Issuance of stock warrants.
• D)Sale of additional common shares.

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Definitions:

Index Number

A statistical measure that shows changes in a variable or group of variables over time, often used for economic data analysis.

Parity Concept

A principle stating that different currencies should have the same purchasing power in different countries, once adjusted for exchange rates.

Parity Ratio

The ratio between the prices of various goods or services, often used in agriculture and trade to compare values.

U.S. Agriculture Act

A series of federal laws that regulate agricultural production, markets, and prices within the United States, often including subsidies and support for farmers.