A company currently has 200,000 shares issued and 190,000 shares outstanding. If the company purchases 20,000 shares of treasury stock, what amount of shares will be outstanding?
A) 170,000.
B) 220,000.
C) 210,000.
D) 180,000.
Answer: A
When treasury stock is sold for more than the company originally paid to purchase the shares, the difference:
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
The corporation's own stock that has been issued and then bought back by the company is referred to as:
A) Preferred Stock.
B) Authorized Stock.
C) Treasury Stock.
D) Common Stock.
Answer: C
