Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

12. Stockholders' Equity

Shares Authorized, Issued, and Outstanding

Financial Accounting

12. Stockholders' Equity

Shares Authorized, Issued, and Outstanding

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Multiple Choice

The number of shares authorized is set forth in the company's:

statement of cash flows

board meeting minutes

balance sheet

articles of incorporation

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Verified step by step guidance

Understand the concept of 'shares authorized': These are the maximum number of shares a corporation is legally allowed to issue, as specified in its governing documents.

Learn about the 'articles of incorporation': This is a legal document filed with the state to formally establish a corporation. It includes key details such as the number of shares authorized, the company's name, and its purpose.

Recognize that the statement of cash flows, board meeting minutes, and balance sheet do not contain information about shares authorized. These documents serve different purposes in financial reporting and corporate governance.

Connect the concept of shares authorized to the articles of incorporation: Since the articles of incorporation are the foundational legal document for a corporation, they are the correct source for this information.

Conclude that the number of shares authorized is set forth in the company's articles of incorporation, as this is the legal requirement for establishing the corporation's share structure.