Listed Below Are Five Terms Followed by a List of Phrases

question 83

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the correct term.
-Rearrangements

• A)Triggers commencement of depreciation.
• B)Cost less accumulated depreciation.
• C)Expenditures made to restructure an asset without addition, replacement, or improvement.
• D)Only used for tax purposes.
• E)Three methods are employed to record these costs.

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Definitions:

Common Stock

A type of equity security that represents ownership interest in a corporation, giving shareholders voting rights and a share in the company's profits via dividends.

Treasury Stock

Repurchased shares by a company, treasury stock is treated as an asset on the balance sheet and can affect the company's shareholders' equity and earnings per share.

Paid-In Capital

Funds received from investors in exchange for shares of a company's stock, reflecting the equity capital contributed by shareholders.

Retained Earnings

The portion of net income that is kept by a company rather than distributed to its shareholders as dividends, to be reinvested in the business or to pay debt.