The Auditor Will Examine Proceeds and Trace Them to Recorded

Multiple Choice

The auditor will examine proceeds and trace them to recorded amounts of the par value of common stock to determine that

A) shares exist and have valid stock certificates.
B) proceeds have been properly distributed between common stock and additional paid-in capital.
C) dividends have been issued in accordance with the stock indenture agreement as approved by the board.
D) shareholders actually have the rights to shares issued by the company in exchange for subscribed funds.