An Auditor Usually Obtains Evidence of Stockholders' Equity Transactions by Reviewing

question 21

Multiple Choice

An auditor usually obtains evidence of stockholders' equity transactions by reviewing the entity's:

• A)minutes of the board of directors' meetings.
• B)transfer agent's records.
• C)canceled stock certificates.
• D)treasury stock certificate book.

---

Definitions:

Unit of Output

A quantifiable amount of goods or services produced by a firm, industry, or economy.

Labor Hire

The process of employing workers, often on a temporary basis, to perform certain jobs or tasks.

Marginal Productivity

is the additional output resulting from using one more unit of a particular input, holding all other inputs constant.

Hourly Wage

The rate of pay employees receive for one hour of work, an important indicator of labor costs and worker compensation in an economy.