Under the Treasury Stock Method, the Number of Shares of Common

question 15

Multiple Choice

Under the treasury stock method, the number of shares of common stock assumed to be reacquired is determined by using the

• A)ending market price of the stock
• B)average market price of the stock
• C)beginning market price of the stock
• D)par value of the stock

---

Definitions:

Potential Energy

The energy held by an object because of its position relative to other objects, stresses within itself, its electric charge, or other factors.

Citric Acid Cycle

A sequence of biochemical processes that aerobic life forms use to liberate energy stored by oxidizing acetyl-CoA, obtained from carbs, fats, and proteins.

Glucose Molecule

A simple sugar that is an important energy source in living organisms and a component of many carbohydrates.

Oxidize Glucose

The process of glucose reacting with oxygen to produce energy, carbon dioxide, and water, primarily through cellular respiration.