Which of the following should be reported for share capital?
A) The shares authorized
B) The shares issued
C) The shares outstanding
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

All of these choices are correct because all three categories of shares (authorized, issued, and outstanding) are important to report in understanding the share capital of a company. The authorized shares refer to the maximum number of shares that the company is legally allowed to issue, while the issued shares refer to the number of shares that have been sold to investors. The outstanding shares refer to the number of shares that are currently held by investors, and may be different from the number of issued shares if any shares have been repurchased or held as treasury stock.

Which of the Following Should Be Reported for Share Capital