Asked by
Kassy Hinojosa
on Nov 13, 2024
Verified
The authorized stock of a corporation
A) must be recorded in a formal accounting entry
B) only reflects the initial capital needs of the company
C) is indicated in its bylaws
D) is indicated in its charter
Authorized Stock
Authorized Stock refers to the maximum number of shares a corporation is legally allowed to issue, as specified in its articles of incorporation.
Formal Accounting Entry
A documented record in accounting that notes all the details of a financial transaction within an organization’s financial system.
Bylaws
The set of rules or guidelines that govern the internal management and regulations of an organization or corporation.
- Gain insight into the methodology and ramifications of distributing shares and the idea of nominal value.
Verified Answer
PS
Learning Objectives
- Gain insight into the methodology and ramifications of distributing shares and the idea of nominal value.