RKJ Company Has Provided the Following

question 92

Multiple Choice

RKJ Company has provided the following:
100,000 shares of $5 par value common stock are authorized;
70,000 shares were issued for $9 per share;
65,000 shares are outstanding.
Which of the following statements is correct based only on the above facts?

• A)Common stock is reported at $630,000 on the balance sheet.
• B)Additional-paid in capital is reported at $260,000 on the balance sheet.
• C)Common stock is reported at $350,000 on the balance sheet.
• D)Treasury stock is reported at $45,000 on the balance sheet.

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Definitions:

Income Security

A social welfare concept ensuring individuals have a basic level of income to cover essential needs.

Social Security

A government program that provides financial assistance to individuals during retirement, disability, or upon the death of a spouse or parent.

Discretionary Spending

This refers to the portion of government spending that is decided through the annual appropriations process, covering non-essential services that do not include mandatory spending like Social Security and Medicare.

Federal Spending

involves the financial expenditures of the federal government, including spending on defense, education, public services, and social welfare.