Treasury Stock Should Most Often Be Recorded At

question 21

Multiple Choice

Treasury stock should most often be recorded at:

• A)Cost.
• B)Par value.
• C)Fair market value at year-end.
• D)Face value.

---

Definitions:

Break-even Point

The financial stage at which total revenues equal total expenses, indicating that a business is neither making a profit nor incurring a loss.

Variable Expenses

Costs that change in proportion to the level of activity or volume of production.

Sales

The transactions involving the exchange of goods or services for payment.

Net Operating Income

A measure of profitability that calculates the difference between a company's operating revenue and its operating expenses, excluding taxes and interest.