Indicate Whether Each of the Following Statements About Treasury Stock

question 148

Short Answer

Indicate whether each of the following statements about treasury stock is true or false.
1. A purchase of treasury stock is reported in the investing activities section of the statement of cash flows
2. The Treasury Stock account is classified as a contra equity account
3. The purchase of treasury stock is an asset exchange transaction
4. Corporations sometimes buy back their own stock to prevent hostile takeovers
5. One reason for a corporation to buy its own stock is to make a quick profit on the reissue of the stock

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Definitions:

Conditioned Stimulus

An original neutral stimulus that, following its connection with an unconditioned stimulus, starts to evoke a conditioned response.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior conditioning.

Unconditioned Response

An automatic and natural response to an unconditioned stimulus, not learned through previous experience, typical in classical conditioning scenarios.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.