According to the CBCA, When a Company Purchases Its Own

question 63

Multiple Choice

According to the CBCA, when a company purchases its own shares on the market

• A) they are recorded with a debit to Repurchased Shares.
• B) the amount paid is deducted from the share class to which they belong.
• C) they must be cancelled.
• D) the excess of purchase price over cost is a loss.

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Definitions:

Assessing Options

The cognitive process of evaluating multiple choices or courses of action before making a decision.

Changeable Situation

Situations or circumstances that are subject to alteration or modification, possibly through human intervention or naturally over time.

Internal Locus

is a psychological concept referring to individuals who believe they can control their life events and outcomes through their own efforts.

External Locus

The belief that one's successes or failures result from external factors beyond their control, contrasted with an internal locus of control.