When a Firm Repurchases Shares the Supply of Shares Is

question 75

Multiple Choice

When a firm repurchases shares the supply of shares is ________ but at the same time the firm's assets ________.

• A)reduced,declines
• B)increased,declines
• C)reduced,increase
• D)increased,increase

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Definitions:

Equity Method

An accounting technique used for recording investments in associate companies where the investment gives the investor significant influence over the company.

Consolidated Balance Sheet

A financial statement that presents the assets, liabilities, and shareholder equity of a parent company and its subsidiaries as one entity.

Sales Revenue

The total income received from selling goods or services before any expenses are subtracted.

Other Revenues

Income from activities that are not part of a company's core business operations.