Common shares issued would exceed common shares outstanding as a result of the
A) declaration of a cash dividend.
B) declaration of a stock dividend.
C) purchase of treasury shares.
D) payment in full of subscribed shares.

Question

Quizplus · Accepted Answer

When a company purchases treasury shares, it reduces the number of shares outstanding but not the number of shares issued, causing issued shares to exceed outstanding shares.

Common Shares Issued Would Exceed Common Shares Outstanding as a Result