Which of the Following Statements Regarding Repurchased Stock Is True

question 23

Multiple Choice

Which of the following statements regarding repurchased stock is true?

• A)It is generally less costly for a company to give employees repurchased shares than to issue new shares.
• B)When a company records a stock repurchase,it is tracking a stockholder's sale of stock to another investor.
• C)Treasury stock is reported on the balance sheet as an asset.
• D)Treasury stock is repurchased stock that has been authorized but is not issued.

Evaluate the financial impact of decision alternatives in special scenarios such as scrapping or rebuilding units.

Utilize the internal rate of return (IRR) and profitability index in comparing and selecting projects.

Recognize and differentiate between capital budgeting methods that consider and do not consider the time value of money.

Understand the definition and role of relevant costs in decision-making.