Concerning treasury shares, which of the following is/are true?
a. Firms recognize no gain or loss from purchasing their own shares or reissuing previously purchased shares.
b. Differences between the purchase and reissue price are not earnings transactions but affect contributed capital accounts.
c. Firms account for the purchase of treasury shares using either the cost method or the par value method or the constructive retirement method.
d. The methods firms use to account for the purchase of treasury shares differ in terms of the shareholders' equity accounts affected, but all result in an equal reduction in total shareholders' equity when firms purchase their own shares.
e. all of the above
E
You might also like to view...
The process of allocating the historical cost of certain assets to the periods of their use in a reasonably systematic manner is referred to as ____________________
Fill in the blank(s) with correct word
“Whn readng sentences, what we expct to read infuences what we thnk the wrds say.” Our ability to read the previous sentence despite the missing letters demonstrates ______.
a. cognitive response informed by past experience b. physiological response provoked by mental cues c. emotional response informed by broken patterns d. expectations
Neville Co issued 20-year term bonds at a discount in 20x5. Interest is payable semiannually. Which of the following statements is true, assuming that the effective interest method of amortization is used for the bond discount?
A) Interest expense decreases each six-month interest period. B) Interest expense as a percentage of the bond's book value changes from period to period. C) Interest expense increases each six-month interest period. D) Interest expense remains constant in amount for each interest period.
Which of the following is not one of the characteristics of good opportunities?
A. Achievable B. Value creating C. Attractive D. Opportunism