A) Increases net income.
B) Increases stockholders' equity.
C) Has no effect on net income or stockholders' equity.
D) Decreases net income and decreases stockholders' equity.
Answer: B
A) 170,000.
B) 220,000.
C) 210,000.
D) 180,000.
Answer: A
A) Increasing the number of shares outstanding.
B) Increasing profits.
C) Reducing the number of shares outstanding.
D) Decreasing the company's obligation to pay dividends.
Answer: C
A) To distribute surplus cash without paying dividends.
B) To boost earnings per share.
C) To satisfy employee stock ownership plans.
D) All of the other answer choices are correct.
Answer: D
A) Preferred Stock.
B) Authorized Stock.
C) Treasury Stock.
D) Common Stock.
Answer: C
A) Increase assets and increase stockholders' equity.
B) Decrease assets and increase stockholders' equity.
C) Decrease assets and decrease stockholders' equity.
D) No effect on the accounting equation.
Answer: C
A) Treasury stock is reported on the balance sheet in the equity section.
B) The purchase and sale of treasury stock has no impact on the income statement.
C) Treasury stock represents a negative equity account.
D) All of the other answer choices are correct.
Answer: D
