Which of the Following Statements Regarding the Retirement of Stock

question 162

Multiple Choice

Which of the following statements regarding the retirement of stock is INCORRECT?

• A)Retiring stock decreases the corporation's outstanding stock.
• B)When retiring stock, the corporation removes the balances from all paid-in capital accounts related to the retired shares.
• C)Retirements of common stock occur more often than retirements of preferred stock.
• D)Retired stock cannot be reissued.

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Definitions:

Humanistic

Pertaining to a psychological perspective that emphasizes individual potential for growth and the importance of human values.

Psychoanalytic

Relating to a theory and therapy developed by Sigmund Freud that emphasizes unconscious psychological processes and contends that childhood experiences are crucial in shaping adult personality.

Cognitive-Behavioural

A therapeutic approach combining cognitive and behavioral techniques to alter maladaptive thoughts and behaviors.

Defense Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses and to maintain one's self-schema.