The transfer agent confirmed to the auditor that the company had 2 500 000 shares outstanding at December 31, 2010. To have assurance over the accuracy of the dividend payable, the auditor would multiply 2 500 000 by the

Question

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To have assurance over the accuracy of the dividend payable, the auditor would multiply the number of shares outstanding by the dividend per share declared. This is because the dividend payable is calculated as the number of shares outstanding multiplied by the dividend per share declared, not paid or stated in the articles of incorporation or based on industry averages. Therefore, choice A is the most appropriate option.

The Transfer Agent Confirmed to the Auditor That the Company