For purposes of computing the weighted average number of shares outstanding during the year, a midyear event that must be treated as occurring at the beginning of the year is the:

Question

Quizplus · Accepted Answer

Stock dividends are treated as if they occurred at the beginning of the year for the purpose of computing the weighted average number of shares because they affect the number of shares outstanding retroactively.

For Purposes of Computing the Weighted Average Number of Shares