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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Definitions:

Anhedonia

The inability to feel pleasure in normally pleasurable activities.

Delusions of Reference

False beliefs that insignificant remarks, events, or objects in one's environment have personal meaning or significance.

Grandiose Delusion

A false belief of one's own superiority, greatness, or omnipotence that is not grounded in reality.

Delusions

Fixed false beliefs that are resistant to reason or confrontation with actual fact, often found in psychological disorders such as schizophrenia.