The Balance Sheet of Messi Services Included the Following Shareholders

question 61

Multiple Choice

The balance sheet of Messi Services included the following shareholders' equity section at December 31, 2018: On January 5, 2019, Holmes purchased 2 million treasury shares for $9 million. Immediately after the purchase of the shares, the balances in the paid-in capital- excess of par and retained earnings accounts are:

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

FA/Sales Ratio

Fixed Assets to Sales Ratio; measures the efficiency of a firm's use of its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits of a company, used for budgeting and strategic planning.

Fixed Assets

Assets that are purchased for long-term use and are not likely to be converted quickly into cash, such as buildings, land, and machinery.

Pro Forma Financial Statements

Financial statements that project the financial position of a company, based on certain assumptions and typically used for future planning.