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The Total Number of Shares Outstanding Is Always Equal to the Number

question 199

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The total number of shares outstanding is always equal to the number of shares authorized.


Definitions:

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Equity.

Cash

Cash refers to the company's currency and coins on hand, including bank account balances, utilized for transactions and operational needs.

Revenue

The total financial proceeds accumulated from a company's chief business endeavors, including sales of services and goods integral to its operations.

Equity

The ownership interest of shareholders in a corporation, represented by the assets minus the liabilities.

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