A Corporation Purchases 10,000 Shares of Its Own $10 Par

question 157

Multiple Choice

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity?

• A) increase, $100,000
• B) increase, $350,000
• C) decrease, $100,000
• D) decrease, $350,000

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Definitions:

Confidence

The feeling or belief that one can rely on someone or something; firm trust.

Self-Esteem

The subjective assessment of one's own worth, ability, or importance, significantly influencing mental health and well-being.

Unconditional Positive Regard

An attitude of grace that values someone regardless of their behavior or feelings.

Low Self-Esteem

A negative perception of oneself, characterized by a lack of confidence and feeling unworthy or inadequate.