Which Statement Is Correct About the "Single Transaction Method" for Treasury

question 3

Multiple Choice

Which statement is correct about the "single transaction method" for treasury shares?

• A)This method increases the contributed surplus when the repurchased shares are later re-sold.
• B)This method has the same effect on contributed surplus to that of the two transaction method.
• C)This method treats the reacquisition and subsequent sale separately for accounting.
• D)This method increases contributed surplus at the time of re-purchase.

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Definitions:

CD

A compact disc, a digital optical data storage format used for storing digital audio, video, and data.

Inference Forms

Patterns of reasoning where the conclusion logically follows from the premises.

MP

An abbreviation often used for "Modus Ponens," a form of argument in logic where from "If P then Q" and "P" one concludes "Q."

Inference Forms

Patterns of reasoning where a conclusion is drawn from premises based on logical principles.