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.

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Definitions:

Moral Reasoning

A person's understanding of moral issues and judgments of right and wrong; relates to Kohlberg's theory of moral reasoning.

Different Perspective

A way of viewing or considering something from a unique angle or viewpoint, often leading to new insights or understanding.

Roper V. Simmons

A landmark Supreme Court case that ruled it unconstitutional to impose capital punishment for crimes committed while under the age of 18.

Capital Punishment

The legally authorized killing of someone as punishment for a crime, typically murder or treason.