Which One of the Following Statements Is Not True

question 70

Multiple Choice

Which one of the following statements is not true?

• A)Treasury stock transactions do not result in gains or losses on the income statement.
• B)Retained earnings may be restricted regarding dividends when treasury stock is held.
• C)The total amount of stockholders' equity is unaffected by the method used to account for treasury stock.
• D)Treasury stock transactions may result in an increase to retained earnings.

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Definitions:

Balanced Scorecard

An approach to strategic planning and management that aligns operational activities with the organization's vision and strategy, improves communication across all levels, and evaluates the organization's success in reaching strategic goals.

Divisional Scorecard

A performance measurement tool used to assess and monitor the performance of individual business units or divisions within a larger organization.

Triple Bottom Line

A framework or theory that recommends that companies commit to focus on social and environmental concerns just as they do on profits.

Sustainability Reporting

The practice of disclosing information regarding a company's environmental, social, and governance (ESG) practices and performance to stakeholders.