What Type of Account Is the Treasury Stock and Additional

question 75

Multiple Choice

What type of account is the Treasury stock and Additional paid-in capital?

• A)\(\begin{array} { l l }
• \text { Trepury stock } & \text { Additional paid-in cepital } \\
• \text { retained earnings } & \text { retained earrings } \\
• \end{array}\)
• B)\(\begin{array}{lccc}
• \text { Treasury stock } & \text { Additional paid-in capital } \\
• \text { asset contra } & \text { stockholders'equity } \\
• \end{array}\)
• C)\(\begin{array}{lccc}
• \text { Trensury stock } & \text { Additional paid-in cepital } \\
• \text { contra stockholders' equity } & \text { stockholders'equity } \\
• \end{array}\)
• D)\(\begin{array}{lccc}
• \text { Treasury stock } & \text { Additional paid-in capital } \\
• \text { common stock } & \text { contra stcckholders' equity } \\
• \end{array}\)
• E)\(\begin{array}{lccc}
• \text { Treasury stock } & \text { Additional paid-in capital } \\
• \text { common stock } & \text { retained eanings }
• \end{array}\)

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Definitions:

Production

The method of producing products and services by merging work, materials, and technology.

Inefficient Allocations

Situations where resources are not optimally distributed, often leading to waste or unmet potential within an economy or system.

Price Ceilings

A cap set by the government on the maximum price that can be asked for a good, service, or resource.

Producer Surpluses

The difference between the actual price a producer receives for a product and the minimum price they would be willing to accept.