AZ Best,Inc.'s corporate charter allows it to issue 1,500,000 shares of common stock.In 2011,its first year of business,the company sold 200,000 shares of common stock.In 2011,the company bought back 5,000 shares to be held as treasury stock.At December 31,2011,how many shares of common stock are outstanding?

Question

Quizplus · Accepted Answer

Outstanding shares of common stock = Total shares issued - Treasury Stock

Total shares issued = 200,000 shares
Treasury stock = 5,000 shares

Therefore, outstanding shares of common stock = 200,000 - 5,000 = 195,000 shares.