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:

Scarcity Principle

A social psychology principle stating that people value and desire something more highly when it is rare or difficult to obtain.

Scarcity

A situation in which resources are insufficient to satisfy all wants and needs.

Reactance

A motivational reaction to offers, persons, rules, or regulations that threaten or eliminate specific behavioral freedoms.

Compliance

The act of conforming to or following rules, regulations, or standards.