Are Stocks Capital Assets
Acounting???????
____13.The purchase of treasury stock
a.increases total assets and decreases total stockholders’ equity.
b.decreases total assets and decreases total stockholders’ equity.
c.increases total assets and increases total stockholders’ equity.
d.decreases total assets and increases total stockholders’ equity.
____14.The resale of treasury stock for an amount greater than its cost
a.increases net income.
b.increases total assets and decreases total stockholders’ equity.
c.decreases total assets and increases total stockholders’ equity.
d.increases total assets and increases total stockholders’ equity.
____15.Each of the following decreases retained earnings except
a.cash dividends.
b.large stock dividends.
c.small stock dividends.
d.stock splits.
____16.Treasury stock is reported in the balance sheet as a deduction from
a.capital stock.
b.additional paid-in capital.
c.retained earnings.
d.paid-in capital and retained earnings.
Treasury stock questions are particularly interesting. This area of accounting teaches you a lot about capital transactions. Best of luck with your studies.
(Capital Asset turnover ratio) Learn Business English Vocabulary Lesson 176