Question

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 Group of answer choices

Answer 1

Options:

A. Declaration and issuance of a stock dividend

B. purchase of treasury stock.

C. Sale of additional common stock.

D.issuance of stock warrants.

Answer:A. Declaration and issuance of a stock dividend.

Explanation:

Weighted average of shares outstanding is an important Statistical metric used in determining the earnings per share for a given period of time. Weighted average number of shares outstanding is vital to the declaration and issuance of shares dividends as through this metric the current average value of a company's share is determined and through this knowledge issuance of shares and dividend can be done effectively.

Answer 2

Answer:

declaration and issuance of a stock dividend.

Explanation:

As the stock dividends will be a distribution of earnings and also, are given to the current stockholders they will be treated as like if the operation was done at the beginning.

Other transactions like issuance of shares, and purchase and sale of rteasury stock will be determinate as weighted average by multipling the months left to the end of the accounting cycle and dividing by 12.