When a Repurchase of Shares Is Done by a Company

question 62

Multiple Choice

When a repurchase of shares is done by a company it:

• A) increases the amount of owners' equity
• B) decreases the amount of owners' equity
• C) decreases the amount of total liabilities
• D) increases the amount of total liabilities

---

Definitions:

Endorsement

The act of signing one's name on the back of a financial instrument, such as a check, thereby transferring rights or title to another party.

Payee

The party that receives the benefit of an order (check, etc.).

Authenticate

The process of verifying the authenticity of a document, object, or digital file to confirm its genuineness.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize the law in all 50 states.