Bryce Canyon,CPA is auditing the financing cycle of Top Hat,Inc.He reviews the articles of incorporation and bylaws of Top Hat in relation to the company's common stock to determine proper disclosure of which of the following?
A)authorized shares and par value.
B)issued shares and treasury stock outstanding.
C)number of shares reserved for retained earnings.
D)state of incorporation and officers.

Question

Quizplus · Accepted Answer

The articles of incorporation and bylaws typically provide information on the company's authorized shares and par value, which are important elements of the company's capital structure. This information is necessary for proper disclosure in the financial statements and for compliance with legal requirements. The other options (B, C, and D) do not relate specifically to the disclosure of common stock and are not as important for the financing cycle audit.

Bryce Canyon,CPA Is Auditing the Financing Cycle of Top Hat,Inc