A Company Would Not Acquire Treasury Stock

question 212

Multiple Choice

A company would not acquire treasury stock

• A)in order to reissue shares to officers.
• B)as an asset investment.
• C)in order to increase trading of the company's stock.
• D)to have additional shares available to use in acquisitions of other companies.

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Definitions:

Cancelled Checks

Checks that have been processed by the bank, serving as proof of payment or transaction.

Prenumbered Documents

Documents that are sequentially numbered in advance, used to ensure completeness and to prevent fraud or duplication.

Approving Payment

The process of confirming that an invoice or bill can be paid, often involving verification that the amount is correct and the goods or services were received.

Payment Duty

The obligation or requirement to make a payment to another party, often as part of a contractual agreement or as part of financial operations.