The Charter of a Corporation Provides for the Issuance of 100,000

question 36

Multiple Choice

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 30,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?

• A) 35,000
• B) 70,000
• C) 25,000
• D) 30,000

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Definitions:

Bankruptcy Petition

A formal request filed in court by an entity or individual seeking relief from their debts under the laws of bankruptcy.

Unsecured Liabilities

Obligations or debts of a company that are not backed by collateral, making them riskier for lenders.

Priority

The established precedence or importance assigned to a task, project, or obligation, influencing the order or sequence of actions.

Salaries Payable

This is a liability account that records the amount owed to employees for work performed that has not yet been paid.