Please Refer to the Following Information for Peartree Company

question 94

Multiple Choice

Please refer to the following information for Peartree Company: If Peartree resold 800 shares of treasury stock for $15 per share, what amounts would be shown for the number of shares issued and outstanding?

• A)100,800 issued; 95,000 outstanding
• B)100,000 issued; 95,800 outstanding
• C)100,000 issued; 94,200 outstanding
• D)100,000 issued; 5,800 outstanding

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Definitions:

Measure Of Value

A standard of value that allows the worth of various goods and services to be compared; often associated with money as a common denominator for value comparison.

Medium Of Exchange

An intermediary instrument used to facilitate the sale, purchase, or trade of goods between parties.

Liquidity Trap

A condition in which interest rates are low and savings rates are high, rendering monetary policy ineffective in stimulating economic growth.

John Maynard Keynes

A British economist whose theories, known as Keynesian economics, had a major impact on modern economic and political theory as well as on fiscal policies of governments.