Repurchasing Shares

question 33

Multiple Choice

Repurchasing shares

• A)has no effect on the number of shares outstanding or on earnings per share.
• B)increases the number of shares outstanding and increases earnings per share.
• C)reduces the number of shares outstanding and reduces earnings per share.
• D)increases the number of shares outstanding and decreases earnings per share.
• E)reduces the number of shares outstanding and increases earnings per share.

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Definitions:

Accrued Revenues

Revenues that have been earned by providing goods or services but have not yet been received or recorded.

Cash Receipts

Cash receipts are the records of all cash inflows, representing money received by a business, typically from its operational activities like sales or services.

Accrue Employee Salaries

The process of recognizing the cost of salaries earned by employees but not yet paid to them.

Salaries Expense

An income statement item representing the total amount paid to employees in the form of salaries and wages during an accounting period.