The Transfer Agent Confirmed to the Auditor That the Company

question 18

Multiple Choice

The transfer agent confirmed to the auditor that the company had 2 500 000 shares outstanding at December 31, 2010. To have assurance over the accuracy of the dividend payable, the auditor would multiply 2 500 000 by the

• A) dividend per share declared.
• B) dividend per share paid during the year.
• C) dividend per share as per the articles of incorporation, even if it was not declared during the year.
• D) average dividend for the industry.

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Definitions:

Fastener

A hardware device that mechanically joins or affixes two or more objects together.

Arrowheads

Styled points at the end of dimension lines or leader lines on a drawing, indicating the feature to which the dimension or note refers.

Cutting-plane Lines

Lines on a drawing indicating the imaginary cut made through a part or assembly to reveal internal features in a sectional view.

Quarter Section

A method of dividing a piece of land into four equal parts in land surveying; also indicative of a technique in illustration where a portion is removed to reveal internal features.