For Purposes of Computing the Weighted-Average Number of Shares Outstanding

question 33

Multiple Choice

For purposes of computing the weighted-average number of shares outstanding during the year,a midyear event that must be treated as occurring at the beginning of the year is the

• A) declaration and issuance of a stock dividend.
• B) purchase of treasury stock.
• C) sale of additional common stock.
• D) issuance of stock warrants.

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Definitions:

Stockholders' Equity

The residual interest in the assets of an entity after deducting its liabilities, representing the ownership interest of the shareholders.

Fees Earned

Income earned through the delivery of services.

Wages Expense

An account representing the total cost of labor paid to employees, typically recorded over a specific accounting period.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.