Casey's Computers Purchased 4,000 Shares of Its Own $10 Par

question 87

Multiple Choice

Casey's Computers purchased 4,000 shares of its own $10 par value common stock for $92,000. As a result of this transaction:

• A) Casey's Paid-in Capital in Excess of Par Value account decreased $52,000.
• B) Casey's Common Stock decreased $40,000.
• C) Casey's Stockholders' Equity decreased $92,000.
• D) Casey's Stockholders' equity increased $52,000.

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Definitions:

Operating Systems

A software that manages computer hardware and software resources, and provides common services for computer programs.

Efficiency Gains

Improvements in the production process that allow for a greater output of goods or services without an increase in input.

Deregulation

The process of removing government restrictions and regulations in industry to allow for more competition and efficiency in the market.

Communications Industry

A sector that encompasses companies and technologies involved in the transmission of information, including media, internet, telecommunications, and broadcasting.