Which Statement About "Share Buy-Back" Is Correct

question 7

Multiple Choice

Which statement about "share buy-back" is correct?

• A)If the repurchase price if below the issue price,an accounting "gain" results.
• B)If the repurchase price if below the issue price,the difference goes to "common shares."
• C)If the repurchase price if below the issue price,the difference goes to "contributed surplus."
• D)If the repurchase price if below the issue price,an accounting "loss" results.

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Definitions:

Cash Payments

Transactions where payment for goods or services is made in the form of physical currency or coins.

Pet Store

A retail business specializing in selling animals, pet supplies, and services such as grooming and training.

Pastries

Baked goods made from dough or batter, often sweetened, and may include items like cakes, pies, and tarts.

Produce Wholesaler

A business entity that buys fruits and vegetables in bulk from farms to resell to retailers, markets, or restaurants.