If a Company Purchases Treasury Stock for $6,000 and Then

question 89

Multiple Choice

If a company purchases treasury stock for $6,000 and then reissues it for $5,000, the difference of $1,000 is

• A)treated as a gain on the sale.
• B)treated as a loss on the sale.
• C)an increase in stockholders' equity.
• D)a decrease in stockholders' equity.

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Definitions:

Moving Average

A statistical technique used to smooth out short-term fluctuations and highlight longer-term trends in data.

Liquor Sales

The commercial activity of selling alcoholic beverages, often regulated by laws that vary widely across different jurisdictions.

Wholesaler

An intermediary entity in the distribution channel that buys goods in large quantities from producers and sells them to retailers or other businesses, but not directly to consumers.

Moving Average

A technique used in time series analysis that smooths data points to help identify trends by averaging a number of adjacent values over a specified period.