Authorized shares of a corporation
A)are the minimum amount of shares that must be issued.
B)increase shareholders' equity.
C)are specified in its articles of incorporation.
D)must be recorded by a formal accounting entry.

Question

Quizplus · Accepted Answer

Authorized shares of a corporation are the maximum number of shares that can be issued, as specified in the articles of incorporation. They do not necessarily need to be issued or recorded by a formal accounting entry.

Authorized Shares of a Corporation