Baria Inc Is Reacquiring 10,000 Common Shares

question 56

Multiple Choice

Baria Inc. is reacquiring 10,000 common shares. The price is $5.00/share and the average price is $5.10. Assuming that there is a contributed surplus balance of $5,000, which accounts will be affected by the transaction?

• A) Common shares, Contributed Surplus, Retained Earnings and Cash
• B) Common shares, Contributed Surplus and Cash
• C) Common shares, Retained Earnings and Cash
• D) Common shares and Cash

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Definitions:

Recession Phase

An interval of economic downturn where commercial and manufacturing operations decrease, commonly indicated by two successive quarters of falling GDP.

Disinflation

A slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.

Labor Force

The total number of people who are both employed and actively seeking employment.

Actively Looking

The process in which individuals engage in a diligent search for employment or opportunities, often involving submitting applications and attending interviews.