Which Statement About a "Treasury Shares" Is Correct

question 14

Multiple Choice

Which statement about a "treasury shares" is correct?

• A)The "single transaction method" treats the reacquisition as the end of the initial share issuance transaction.
• B)The "two transaction method" decreases the contributed surplus when the repurchased shares are later resold.
• C)The "two transaction method" treats the reacquisition and subsequent sale as one cycle for accounting.
• D)The "single transaction method" treats the reacquisition and subsequent sale as two parts of the same transaction.

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Definitions:

Dollars

A unit of currency used in various countries, including the United States, Canada, Australia, and New Zealand.

Residuals

Differences between observed and predicted values in a statistical model, used to assess the model's fit.

Error Variable

The difference between observed and predicted values in a statistical model, often referred to as the residual.

Sum of Squares for Error

A measure of the discrepancies or variations between observed and predicted values in a data set, used in statistical analysis.