When Treasury Stock Accounted for by the Single-Transaction Method Is

question 60

Multiple Choice

When treasury stock accounted for by the single-transaction method is subsequently sold for more than its purchase price,the excess of the cash proceeds over the carrying value of the treasury stock should be recognized as:

• A) an unusual gain.
• B) Income from continuing operations.
• C) Increase in contributed capital.
• D) Increase in retained earnings.

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Definitions:

Generations

Groups of individuals, typically within a society, born and living at about the same time, known for having shared experiences.

Content Validity

The extent to which a test or measurement accurately represents the construct it is intended to measure, covering all relevant facets.

Predictive Validity

The extent to which a test accurately forecasts a specific future outcome.

Concurrent Validity

The degree to which the results of a particular test correlate with those of another established measure given at the same time.