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

question 37

Multiple Choice

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

• A)This method decreases 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 as once cycle for accounting.
• D)This method increases contributed surplus at the time of re-purchase.

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Definitions:

Golgi Tendon Organ

Proprioceptive nerve ending in a tendon.

Homeostatic

Relating to homeostasis, the process by which living organisms regulate their internal environment to maintain a stable, constant condition.

Reflexes

Automatic, involuntary responses to specific stimuli that are designed to protect the body and maintain homeostasis, occurring without conscious thought.

Knee-Jerk Reflex

Another term for the patellar reflex, indicating the spontaneous kicking movement of the lower leg in response to a sharp tap on the patellar tendon.