A Retirement of Common Stock

question 66

Multiple Choice

A retirement of common stock:

• A) decreases the number of shares of common stock issued.
• B) decreases the number of shares of common stock issued and reduces the balance in the common stock account.
• C) produces a gain or loss reported on the income statement.
• D) reduces the balance in the Common Stock account.

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Definitions:

UCC

Uniform Commercial Code, a standardized set of laws and regulations intended to facilitate the smooth transaction of commerce among American states.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States.

Contracting Parties

The individuals, entities, or organizations that enter into a contractual agreement.

Flexibility

The quality of being adaptable or the capacity to be easily modified or adjusted in response to changing conditions.