Assume Common Stock Is Issued to Employees as a Result

question 141

Multiple Choice

Assume common stock is issued to employees as a result of exercising stock purchase rights issued under a noncompensatory share purchase plan. Which of the following accurately describes the effect on the company's income, paid-in capital, and retained earnings, respectively?

• A) decreased, increased, and decreased
• B) no effect, increased, and increased
• C) decreased, increased, and no effect
• D) no effect, increased, and no effect

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Definitions:

Resilience

The capacity to recover quickly from difficulties; toughness.

Presbycusis

Loss of acuteness of hearing due to age-related degenerative changes in the ear.

Degenerative Changes

The process involving the gradual deterioration of the structure or function of tissues, organs, or the entire organism, often associated with aging.

Age Validation

The process or method used to confirm or determine an individual's age or the age of objects or samples.