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There are many different methods available for costing inventory. Therefore, the decision on which method to select should involve some serious thought as to the consequences involved.
Required:
Treasury Stock
Shares that were once part of the outstanding shares but were bought back by the issuing company.
Common Stock
A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.
Paid-In Capital
The total amount of money that a company has received from shareholders in exchange for shares of stock, exceeding the par value of the shares.
Stock Split
An action by a company to increase the number of its outstanding shares by issuing more shares to current shareholders, usually to make the stock more affordable.
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