Which Statement Does Not Explain the "Two Transaction Method" for Treasury

question 63

Multiple Choice

Which statement does not explain the "two transaction method" for treasury shares?

• A)This method treats the reacquisition as the end of the initial share issuance transaction.
• B)This method treats the subsequent sale as the start of another transaction.
• C)This method treats the reacquisition and subsequent sale separately for accounting.
• D)This method treats the reacquisition and subsequent sale as two parts of the same transaction.

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Definitions:

Zoning Ordinances

Laws regulating the use of land and buildings within specific areas to control and direct property development.

Assumes the Mortgage

The process by which a buyer takes over the seller's mortgage as part of the terms of purchasing a home.

Personally Liable

Refers to the direct responsibility an individual has to fulfill an obligation or debt, making their personal assets vulnerable to being claimed in the event of non-fulfillment.

Enabling Statute

Legislation that creates new powers or authorities for government agencies or officials to implement and enforce laws.