When Treasury Stock Is Sold at an Amount Less Than

question 126

Multiple Choice

When treasury stock is sold at an amount less than its cost, the sale is classified as:

• A) A financing activity.
• B) An operating activity.
• C) A financing activity and an operating activity.
• D) An investing activity.

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Definitions:

Reinforcement

A concept in behaviorism that increases the likelihood of a behavior being repeated through positive or negative stimuli.

Learned Reflexive Response

A behavior that is developed over time through conditioning, in which a stimulus automatically elicits a response.

Conditioning

A method of altering behavior in which an individual learns to connect a new behavior with a stimulus that was previously not related to it.

Psychodynamic Perspective

Modern version of psychoanalysis that is more focused on the development of a sense of self and the discovery of motivations behind a person’s behavior other than sexual motivations.