Using the Following Accounts

question 113

Multiple Choice

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transactions.
-Sold treasury stock at a price below cost when there was sufficient paid-in capital from treasury stock to absorb the difference between cost and selling price.
Debit ________ & ________ Credit ________

• A)Cash
• B)Dividends payable
• C)Preferred stock
• D)Common stock
• E)Common Stock dividend distributable
• F)Paid-in capital in excess of par value-common
• G)Paid-in capital in excess of par value - preferred
• H)Paid-in capital from treasury stock
• I)Retained earnings
• J)Treasury stock
• K)Paid-in capital in excess of par value-Stock dividend

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Definitions:

IFRS Qualifying Criteria

Specific conditions and standards companies must meet to comply with International Financial Reporting Standards.

Internal Controls

Processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Controls Over Cash

Procedures and practices employed by a company to safeguard its cash and ensure accuracy in its financial transactions.

Postdated Check

A check written with a date in the future, preventing it from being cashed or deposited until that date.