Which Statement Best Describes the Accounting When a Company Cancels

question 39

Multiple Choice

Which statement best describes the accounting when a company cancels its own shares at an amount greater than their par value?

• A)Retained earnings will be debited at an amount equal to the par value of the shares.
• B)Retained earnings will be credited at an amount equal to the par value of the shares.
• C)Contributed surplus will be debited at an amount equal to the par value of the shares.
• D)Share capital will be debited at an amount equal to the par value of the shares.

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Definitions:

Transference

The redirection of feelings and desires from one person to another, especially in the context of psychoanalytical therapy.

Countertransference

The emotional reaction of a therapist towards the client, often influenced by the therapist's own background, beliefs, or experiences.

Psychoanalytically Oriented

Referring to a therapeutic approach or perspective that involves the theories and techniques of psychoanalysis, focusing on unconscious processes.

Solution-focused Brief Therapists

Therapists who employ a short-term approach focusing on finding solutions and building on client strengths rather than dwelling on problems.