Which Statement Best Describes the Accounting When a Company Cancels

question 18

Multiple Choice

Which statement best describes the accounting when a company cancels its own shares at an amount higher than the average share value?

• A)Contributed surplus and retained earnings will be credited.
• B)Contributed surplus and retained earnings will be debited.
• C)Contributed surplus will be credited,thereby increasing equity.
• D)Contributed surplus will be debited,thereby decreasing equity.

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