In which of the following situations would a journal entry need to be recorded?

There is a remote chance of losing a court case and the amount of the loss is $100,000.

Your legal team believes an out-of-court settlement is probable and the amount of the loss can be reasonably estimated.

All of these require a journal entry.

Your legal team believes an out-of-court settlement is probable and the amount of the loss cannot be reasonably estimated.

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of authorized shares?

60,000

35,000

45,000

100,000

If only one class of stock is issued, the type of stock is referred to as:

Non-cumulative Stock

Cumulative Stock

Preferred Stock

Common Stock