A Possible Result of the Reacquisition and Cancellation of Shares

question 50

Multiple Choice

A possible result of the reacquisition and cancellation of shares by a corporation is that this may

• A) directly increase but not decrease retained earnings.
• B) increase net income if a gain is recognized.
• C) directly decrease but not increase retained earnings.
• D) decrease but not increase net income.

Recognize the role of role differentiation in enhancing group function.

Understand the social psychological principles underlying group dynamics, including deindividuation and social facilitation.

Comprehend the importance of achieving a balance between individuality and belonging within groups.

Understand the equity method for accounting investments and its impact on financial statements.

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