True or False?
1) The number of authorized shares should always equal or exceed the number of outstanding shares.
2) For accounting purposes, stated value is treated the same way as par value.
by 
John Smith
ANSWERS: 2
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1 False. The number of authorized shares is equal to the total number shares that COULD be distributed. The number of outstanding shares is the number of shares that HAVE been distributed. 2 True. Stated value and Par value are the same. That is the face value of the stock. It's NOT the market value.
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1. True The First Answer, below, says that Statement 1 is "False" and then goes on to explain why it is actually "True." If "the number of authorized shares is equal to the total number shares that COULD be distributed [and] the number of outstanding shares is the number of shares that HAVE been distributed," then "the number of authorized shares should [must and will] always equal or exceed the number of outstanding shares." All outstanding shares are authorized but not all authorized shares are outstanding.
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