Treasury Stock Is

question 79

Multiple Choice

Treasury stock is:

• A) common stock that is issued in a stock dividend.
• B) common or preferred stock that has been reacquired by the corporation.
• C) previously issued common stock that has been canceled.
• D) unissued, but authorized common stock.

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Definitions:

Return On Investment

A metric for assessing how well an investment is doing by comparing the net profit to the investment's initial cost.

Direct Expenses

Expenses directly linked to the manufacturing of particular products or services.

Sales

Sales involve the exchange of a product or service for money or its equivalent, constituting a fundamental activity of commercial enterprises to generate revenue.

Operating Departments

These are divisions within a business that are directly involved in carrying out the operations central to the business's purpose.