The following data regarding its common stock were reported by a corporation:
$$\begin{array} { | l | r | }
\hline \text { Authorized shares } & 20,000 \
\hline \text { Issued shares } & 15,000 \
\hline \text { Treasury shares } & 3,000 \
\hline
\end{array}$$
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 regarding its common stock were reported by a corporation:
$$\begin{array} { | l | r | } 
\hline \text { Authorized shares } & 20,000 \
\hline \text { Issued shares } & 15,000 \
\hline \text { Treasury shares } & 3,000 \
\hline
\end{array}$$
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: 15,000 - 3,000 = 12,000.

The Following Data Regarding Its Common Stock Were Reported by a Corporation