MegaCorp Purchased 10,000 Shares of Its Own Stock That Had

question 27

Multiple Choice

MegaCorp purchased 10,000 shares of its own stock that had previously been owned by private investors.The stock MegaCorp repurchased is called

• A)authorized and unissued.
• B)authorized and issued.
• C)treasury stock.
• D)repurchased stock.

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Definitions:

Merchandise Sold

Pertains to the goods that have been sold to customers by a company during a specific period, often accounted for in the sales revenue section of an income statement.

Accounts Payable

The amount a company owes on short-term debts to its vendors or suppliers.

Investing Activities

Part of the cash flow statement that details cash inflow and outflow related to the purchase and sale of long-term investments and assets.

Financing Activities

Transactions related to changes in the equity and debt of an organization, including issuing shares, paying dividends, and borrowing funds.