The Sale of Treasury Stock Cannot Result in

question 68

Multiple Choice

The sale of treasury stock cannot result in

• A)an increase in Retained Earnings.
• B)the crediting of Paid-in Capital,Treasury Stock.
• C)the debiting of Paid-in Capital,Treasury Stock.
• D)an increase in total stockholders' equity.

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Definitions:

Period Costs

Expenses that are not directly associated with manufacturing and are therefore recorded as expenses in the period in which they are incurred.

Factory Utilities

The costs associated with utilities consumed in the manufacturing process, such as electricity, water, and gas necessary for factory operations.

Product Cost

The total expenses incurred to produce and deliver a product, including direct materials, direct labor, and overhead.

Period Cost

Costs not directly associated with production, charged as expenses during the period they arise.