When Verifying If Capital Stock Is Accurately Recorded

question 50

Multiple Choice

When verifying if capital stock is accurately recorded,

• A) the ending balance in the account does not need to verified.
• B) the number of shares outstanding at the balance sheet date is verified by examining the corporate minutes.
• C) the recorded par value can be determined by multiplying the number of shares by the market price of the stock.
• D) a confirmation from the transfer agent is the simplest way to verify the number of shares outstanding at the balance sheet date.

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