Which of the Following Is Correct About Reissuing Treasury Stock

question 178

Multiple Choice

Which of the following is correct about reissuing treasury stock?

• A)If treasury stock is sold at a higher price than the stock's cost when the company reacquired it,a gain will be recognized.
• B)If treasury stock is sold at a higher price than the stock's par value,a gain will be recognized.
• C)If the treasury stock is sold at a lower price than the amount of the original issuance,a loss will be recognized.
• D)A gain or loss on the reissuance of treasury stock is never recognized.

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Definitions:

Corporate Strategy

The overall direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources.

Business Strategy

A plan of action designed to achieve a long-term or overall aim in the realm of commerce and management.

Branding Strategy

A long-term plan for the development of a successful brand in order to achieve specific goals, primarily focused on differentiating itself from competitors.

Business Strategy

A plan of action designed to achieve a company's long-term goals and compete effectively in the market.