A Company Reacquires Its Own Shares During the Fiscal Year

question 64

Multiple Choice

A company reacquires its own shares during the fiscal year and reports the transaction in the theoretically correct manner.What effect will this transaction have on shareholders' equity and earnings per share, respectively?

• A)Decrease and increase
• B)Increase and no effect
• C)Decrease and decrease
• D)Increase and decrease

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Definitions:

Terman and Oden

Researchers known for their longitudinal study on gifted children, calling it the Genetic Studies of Genius.

Intellectual Disability

A term describing individuals who have significant limitations in both intellectual functioning and in adaptive behavior, which covers many everyday social and practical skills.

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most values cluster around a central region.

Heritability

Degree to which the changes in some trait within a population can be considered to be due to genetic influences; the extent to which individual genetic differences affect individual differences in observed behavior; in IQ, proportion of change in IQ within a population that is caused by hereditary factors.