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

question 61

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 (valued at par value)
• D) Treasury shares at cost

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Definitions:

Sales Price Variances

The difference between the actual price at which goods or services are sold and the expected (standard) sale price.

Sales Volume Variances

This is the difference between the actual sales volume and the budgeted sales volume, affecting revenue and expense projections.

Direct Materials Price Variance

The variance between the real expense of direct materials utilized in production and their predetermined cost, multiplied by the real amount of materials used.

Pounds

A unit of weight commonly used in the United States' customary and British imperial measurement systems.