Which of the Following Balance-Sheet Accounts Will Not Be Affected

question 34

Multiple Choice

Which of the following balance-sheet accounts will not be affected when there is a reduction in the number of outstanding shares?

• A)Retained earnings
• B)Additional paid-in capital
• C)Common shares (at par value)
• D)Treasury stock at cost

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Definitions:

Clean Price

The price of a bond excluding any accrued interest; the price the bond is actually quoted at in the financial markets.

Call Provision

A clause in a bond or other fixed-income security that allows the issuer to repay the bond before its maturity date.

Canada Yield Curve

A plot of the yields on Government of Canada notes and bonds relative to maturity.

Retractable Bond

Bond that may be sold back to the issuer at a prespecified price before maturity.