When Treasury Stock Is Purchased for an Amount Greater Than

question 167

Multiple Choice

When treasury stock is purchased for an amount greater than its par, what is the effect on total shareholders' equity?

• A) Increase.
• B) Decrease.
• C) No effect.
• D) Cannot tell from the given information.

---

Definitions:

Shape Constancy

The perceptual phenomenon wherein the perceived shape of an object remains constant despite changes in its retinal image due to varying angles and distances.

Dinner Plate

A large, flat dish from which main meals are typically eaten, an essential component of dining tableware.

Consistent Form

The quality of maintaining uniformity or stability in structure or appearance over time.

Color Constancy

The perceptual property that ensures an object appears the same color under varying lighting conditions.