RKJ Company Has Provided the Following: • 100,000 Shares of $5

question 44

Multiple Choice

RKJ Company has provided the following: • 100,000 shares of $5 par value common stock are authorized
• 70,000 shares have been issued
• 65,000 shares are outstanding
Which of the following statements is correct?

• A) RKJ has 35,000 shares of treasury stock.
• B) RKJ has 30,000 shares of treasury stock.
• C)RKJ can resell 5,000 shares of common stock.
• D)RKJ can issue an additional 35,000 shares of common stock.

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Definitions:

Recover

The act of obtaining a return of something or compensation through legal processes, such as the recovery of damages in a lawsuit or the reclaiming of property.

Presentment Warranties

Guarantees made when presenting negotiable instruments, like checks, assuring the legitimacy and certain qualities of the instrument.

Instrument

A written legal document that officially records a legally enforceable act, process, or contractual obligation, arrangement, or right.

Promissory Note

A legal instrument in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.