When an Entity Re-Acquires Its Own Shares

question 3

Multiple Choice

When an entity re-acquires its own shares:

• A) those shares shall be removed from equity
• B) no gain or loss shall be recognised in the income statement
• C) they must not be recognised as a financial asset
• D) all of the above

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Definitions:

Positive Cash Flow

A financial condition where the inflows of cash into a business exceed the outflows over a specified period, indicating liquidity and financial health.

Attention-Deficit/Hyperactivity Disorder

A neurodevelopmental disorder characterized by problems with attention, excessive activity, or difficulty controlling behavior which is not appropriate for a person's age.

Psychological Disorders

Patterns of behavioral, cognitive, emotional, or physical symptoms shown by an individual, significantly affecting multiple areas of life and often considered deviant or distressing within their cultural context.

Impulsive

Impulsive describes a tendency to act quickly on desires and feelings without considering the consequences.