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Authorized stock has not necessarily been issued. The incorporating state authorizes the corporation to issue a certain number of shares of stock. All shares of a company are authorized... not all are issued.

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17y ago

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Is authorized stock a liability on a balance sheet or only once it's issued?

Authorized stock becomes liability only once it is issued which is called issued capital and authorized capital is just there as an statement to inform the maximum amount of issued share capital.


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Issued stock means you have some item for sale. you sold some quantity from that stock that's issued stock


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Issued shares(I) are shares of stock that have been sold to investors. It includes both outstanding shares(O) and Treasury shares(T). Thus, I = O+T Outstanding shares(O) are shares of stock currently owned by the shareholders.


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