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

question 32

Multiple Choice

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

• A)This method has the same effect on contributed surplus to that of the two transaction method.
• B)This method uses a separate "treasury shares" account upon re-purchase.
• C)This method treats the reacquisition and subsequent sale separately for accounting.
• D)This method decreases contributed surplus at the time of re-purchase.

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Definitions:

Awareness

The state of being conscious of something, which can involve attention, concern, or knowledge of a particular issue or fact.

Statistical Inference

The process of drawing conclusions from data subject to random variation.

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