At the End of 2018, What Is the Maximum Number

question 22

Essay

At the end of 2018, what is the maximum number of shares that could possibly be issued if all stock options and awards are exercised? Explain why V Co. used only 3.3 million in its computation for 2018.

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Definitions:

Prepaid Insurance

The cost of insurance premiums that have been paid in advance for future coverage, recorded as an asset on the balance sheet.

Accounts Receivable

Receivables from customers for goods or services that have been used or delivered, but remain unpaid.

Insurance Expense

The cost incurred by a business or individual for purchasing insurance coverage, recognized as an expense in financial statements.

Trial Balance

A report listing all the balances in each general ledger account, ensuring debits equal credits for accuracy in accounting.