Purchase Solution

Incorrect practices related to the treasury stock

Not what you're looking for?

Ask Custom Question

The following items discusses the practices related to the treasury stock. Please choose the item that is not a correct practice.

a.Treasury stock is the own common share repurchased by the firm.
b.Treasury stock is recorded as an asset on B/S
c.To increase the stock price, firms may have treasury stocks.
d.The profit from sales of the treasury stocks is recorded as a capital increase

Purchase this Solution
Solution Summary

Your tutorial gives you a paragraph of instructional comments about how to record treasury stock purchase and reissue.

Solution Preview

Treasury Stock.

The following items discusses the practices related to the treasury stock. Please choose the item that is not a correct practice.

a.Treasury stock is the own common share repurchased by the firm.
b.Treasury stock is recorded as an asset on B/S
c.To increase the stock price, firms may have ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Operations Management

This quiz tests a student's knowledge about Operations Management

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Motivation

This tests some key elements of major motivation theories.

View More Free Quizzes
Related BrainMass Solutions

  • Multiple Choice Questions

    Treasury bills carry the least risk (considered to be risk free). Thus options C) and D) are incorrect. Small company stocks are riskier than large company stocks; hence option E) is incorrect.

  • Journal Entries and Treasury Stock Transactions

    Prepare journal entries for the following selected transactions related to this company's stock during the current year. Mar. 1 Purchased 10,000 shares of treasury stock for $17 per share.

  • Auditing: liabilities, internal control, treasury stock

    106007 Auditing Questions: unrecorded liabilities, internal control, treasury stock _____ 17. Which of the following internal control procedure that is usually applied to accounts payable? A.

  • Journal Entries

    4607 Journal Entry Journalize the following transactions related to stock issuances. 1. Issued 400 shares of 75$ par value of preferred stock in exchange for land that had an appraised value of 38,000. 2.

  • Taxation - Circular 230 apply

    Explain As part of an ongoing effort to improve ethical standards for tax professionals and to curb abusive tax avoidance transactions, the Treasury Department and the Internal Revenue Service issued in 2004, final regulations amending Treasury Department

  • Risk of investments

    Treasury bills carry the least risk (considered to be risk free). Thus options C) and D) are incorrect. Small company stocks are riskier than large company stocks; hence option E) is incorrect.

  • Accounting Multiple Choice

    Column 1 Column 2 Column 3 Treasury Stock 14,000 Cash 14,000 Par value: a. is greater than market value. b. is less than market value. c. changes in proportion to market d. is not related to market value.

  • Paid In Capital Computations

    Preferred Stock 400,000 Retained Earnings 1,500,000 Treasury Common Stock (at cost) 150,000 2. The total paid-in capital (cash collected) related to the common stock is ???

  • Stockholders Equity and Paid-In Capital for Edis Corporation

    What is the total paid-in capital (cash collected) related to the common stock? 1. Stockholders' equity would total to (4,300,000 + 550,000 + 2,000,000 + 400,000 + 1,500,000 - 150,000) = 8,600,000.

View More Related Solutions