When a Company Keeps Its Own Stock Records, Which of the Following

question 24

Multiple Choice

When a company keeps its own stock records, which of the following procedures is not required?

• A)Confirm outstanding common stock with stock registrar agent.
• B)Inspect the stock record stubs for certificate numbers and number of shares.
• C)Inspect the unissued certificates.
• D)Obtain written representation about the number of shares issued and outstanding.

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Definitions:

Explicit Costs

Costs that involve direct monetary payment by a firm for the resources needed in production, such as wages and materials.

Implicit Costs

The opportunity costs of utilizing resources owned by the company for its operations instead of other purposes.

Accounting Profit

The financial gain calculated by subtracting total explicit costs from total revenues, excluding the consideration of implicit costs or opportunity costs.

Economic Profit

The gap between a company's total earnings and its combined explicit and implicit expenses.