Which of the Following Represents the Largest Number of Common

question 70

Multiple Choice

Which of the following represents the largest number of common shares?

• A) Treasury shares
• B) Issued shares
• C) Outstanding shares
• D) Authorized shares

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Definitions:

First-In, First-Out Method

An accounting method for valuing inventory where the oldest items are sold or used first.

Equivalent Units

A concept in process costing that converts partially completed units into a number of equivalent full units for the purpose of cost assignment.

Weighted-Average Method

An inventory valuation technique that calculates the cost of inventory by taking the average cost of all similar items present in the inventory.

First-In, First-Out Method

An inventory valuation method whereby the oldest inventory items are recorded as sold first, thus the cost of items purchased first is charged against revenue earlier.