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:

Spontaneous Recovery

The rebirth of an extinguished response after a break, without the need for relearning.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Counterconditioning

A behavioral therapy technique that involves the conditioning of an unwanted behavior or response to a stimulus into a desired behavior by associating the stimulus with a new, incompatible response.

Instinctive Drift

The phenomenon whereby an animal's conditioned responses revert to instinctual behaviors, interfering with learned behaviors.