The following data were reported by a corporation:
$$\begin{array} { l c }
\text { Authorized shares } & 20,000 \
\text { Issued shares } & 15,000 \
\text { Treasury shares } & 3,000
\end{array}$$
The number of outstanding shares is:
A) 12,000.
B) 15,000.
C) 17,000.
D) 20,000.
E) 23,000.

Question

The following data were reported by a corporation:
$$\begin{array} { l c } 
\text { Authorized shares } & 20,000 \
\text { Issued shares } & 15,000 \
\text { Treasury shares } & 3,000
\end{array}$$
The number of outstanding shares is:
A) 12,000.
B) 15,000.
C) 17,000.
D) 20,000.
E) 23,000.

Quizplus · Accepted Answer

Outstanding shares are calculated by subtracting treasury shares from issued shares. Therefore, 15,000 issued shares - 3,000 treasury shares = 12,000 outstanding shares.