RKJ Company Has Provided the Following Information: • 100,000 Shares

question 119

Multiple Choice

RKJ Company has provided the following information: • 100,000 shares of $5 par value common stock are authorized
• 70,000 shares have been issued
• 65,000 shares are outstanding
Which of the following statements is correct?

• A)RKJ has 35,000 shares of treasury stock.
• B)RKJ has 30,000 shares of treasury stock.
• C)RKJ can resell 5,000 shares of common stock.
• D)RKJ can issue an additional 35,000 shares of common stock.

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Definitions:

Cash

Money in the form of coins or banknotes held by an individual or organization, readily available for transactions.

Adjusting Entries

Bookkeeping entries executed at the termination of a financial period for the purpose of apportioning earnings and expenses to the actual period they took place.

Balance Sheet Accounts

Accounts appearing on the balance sheet, representing a company's assets, liabilities, and equity at a specific point in time.

Income Statement Accounts

Accounts that reflect income, expenses, gains, and losses, which are used to determine the net income of a business.