The number of outstanding shares is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![The following data were reported by a corporation:
- **Authorized shares:** 20,000
- **Issued shares:** 15,000
- **Treasury shares:** 3,000
The number of outstanding shares is:
**Multiple Choice**
- [ ] 15,000
- [ ] 17,000
- [ ] 23,000
- [ ] 12,000
In this example, you need to determine the number of outstanding shares. Outstanding shares are calculated as the issued shares minus the treasury shares.
Formally:
\[ \text{Outstanding shares} = \text{Issued shares} - \text{Treasury shares} \]
Substituting the values:
\[ 15,000 - 3,000 = 12,000 \]
Therefore, the correct answer is **12,000**.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F25310e27-d02e-4900-871a-4bca6692b57f%2F62ca6356-dc17-49f4-a5f2-c29f406b5bb7%2Fhhgzfr4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following data were reported by a corporation:
- **Authorized shares:** 20,000
- **Issued shares:** 15,000
- **Treasury shares:** 3,000
The number of outstanding shares is:
**Multiple Choice**
- [ ] 15,000
- [ ] 17,000
- [ ] 23,000
- [ ] 12,000
In this example, you need to determine the number of outstanding shares. Outstanding shares are calculated as the issued shares minus the treasury shares.
Formally:
\[ \text{Outstanding shares} = \text{Issued shares} - \text{Treasury shares} \]
Substituting the values:
\[ 15,000 - 3,000 = 12,000 \]
Therefore, the correct answer is **12,000**.
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