A Possible Result of the Reacquisition and Cancellation of Shares

question 239

Multiple Choice

A possible result of the reacquisition and cancellation of shares by a corporation is that this may

• A)directly increase but not decrease retained earnings.
• B)increase net income if a gain is recognized.
• C)directly decrease but not increase retained earnings.
• D)decrease but not increase net income.
• Shareholders' Equity 15- 13

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Definitions:

Analogical Representations

Mental representations that have some of the physical characteristics of objects.

Perfect Representation

An ideal or flawless depiction of a concept, object, or theory.

Organizing Concepts

Fundamental principles or ideas that form the foundation of understanding and structuring knowledge in a particular domain.

Mental Representation

Internal cognitive symbols that represent external reality or thoughts, allowing individuals to think about and navigate the world.