The Purchase of Treasury Stock

question 25

Multiple Choice

The purchase of treasury stock:

• A)decreases both assets and stockholders' equity.
• B)increases both assets and stockholders' equity.
• C)increases assets and decreases stockholders' equity.
• D)decreases assets and increases stockholders' equity.

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Definitions:

Environmental Resistance

Total of factors in the environment that limit the numerical increase of a population in a particular region.

Carrying Capacity

The maximum population size of a species that an environment can sustain indefinitely, given the food, habitat, water, and other necessities available in the environment.

Exponential Growth

Growth, particularly of a population, in which the increase occurs in the same manner as compound interest.

Lag Phase

The initial period of slow growth or inactivity that occurs after bacteria are introduced to a new environment or nutrient medium.