Which of the Following Combinations Appropriately Reflects the Type of Accounts

question 184

Short Answer

Which of the following combinations appropriately reflects the type of accounts represented by the Treasury Stock account and the Additional Paid-In Capital-Treasury Stock account?
$\begin{array}{cc} \text { Treasury Stock} &&&&&& \text {Additional Paid-In Capital—-Treasury Stock } \\\end{array}$
a. $\begin{array}{cc} \text { contra stockholders' equity } & \text { stockholders' equity } \\\end{array}$

b. $\begin{array}{cc} \text { contra stockholders' equity } & \text { contra stockholders' equity } \\\end{array}$

c. $\begin{array}{cc} \text { stockholders' equity } &&&& \text {stockholders' equity } \\\end{array}$

d. $\begin{array}{cc} \text {retained earnings } &&&&& \text { retained earnings} \\\end{array}$

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Definitions:

Sensorimotor Period

A stage of development in Piaget's theory, occurring from birth to approximately 2 years of age, where infants learn about their world through their senses and motor activities.

Reflexive

Pertaining to or characterized by reflex action; automatic and involuntary response to stimuli.

Primary Circular Reactions

Repetitive actions in very young infants, which serve to build the infant’s own sensory-motor coordination.

Pleasurable Actions

Activities or behaviors that produce feelings of enjoyment or satisfaction.