The Excess of Sales Price of Treasury Stock Over Its

question 165

Multiple Choice

The excess of sales price of treasury stock over its cost should be credited to

• A) Treasury Stock Receivable
• B) Premium on Capital Stock
• C) Paid-In Capital from Sale of Treasury Stock
• D) Income from Sale of Treasury Stock

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Definitions:

Process Costing

An accounting method used where identical or similar products are mass-produced, assigning average costs to each unit based on the total costs of production divided by the number of units produced.

Job Order Costing

A costing system used to accumulate costs for individual jobs or orders, typically used in industries where products are customized.

Job Cost Sheets

A document used in manufacturing to record the costs associated with a specific job or order, including materials, labor, and overhead.

Work in Process Inventory

Goods and materials that are in the process of being manufactured but are not yet finished products.