Which of the Following Statements Is TRUE Regarding the Disposal

question 3

Multiple Choice

Which of the following statements is TRUE regarding the disposal of shares by a shareholder?

• A) When a shareholder sells shares to other shareholders, the corporation's capital base increases.
• B) The sale of shares to other shareholders is known as a 'buy-back'.
• C) The sale of shares to the corporate treasury is not allowed in the Income Tax Act.
• D) The sale of shares to the corporate treasury may result in a deemed dividend and a capital gain or loss to the shareholder.

Understand the role of the liver in blood cell destruction and its contribution to bile production.

Recognize the relationship between blood components and the body's immune response.

Understand the significance and mechanisms of separate payroll cash accounts for enhanced internal control and reconciliation.

Identify the sources of information for recording wages and salaries, including payroll register and various forms.

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Definitions:

Investment in Bonds

Financial investments made by purchasing debt securities issued by corporations or governments, aiming to earn interest income.

Equity Method

An accounting technique used for recording investments in which the investor has significant influence over the investee but does not exercise full control.

Significant Influence

This term refers to the power to participate in the financial and/or operating policy decisions of another entity, but not control those policies. It is often quantified by owning 20% to 50% of the voting shares of the investee company.

Investee

The company whose stock is purchased by the investor.