Quiz_6_KEY _DAY - ACC 5110 Name: Part I. Choose the best...

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ACC 5110 Winter 2010 QUIZ 6 Name: KEY Part I. Choose the best answer. 1. Treasury shares are a. shares held as an investment by the treasurer of the corporation. b. shares held as an investment of the corporation. c. issued and outstanding shares. d. issued but not outstanding shares. 2. Which of the following best describes a possible result of treasury stock transactions by a corporation? a. May increase but not decrease retained earnings. b. May increase net income if the cost method is used. c. May decrease but not increase retained earnings. d. May decrease but not increase net income. 3. At the date of declaration of a large common stock dividend, the entry should not include a. a credit to Common Stock Dividend Distributable. b. a credit to Paid-in Capital in Excess of Par. c. a debit to Retained Earnings. d. All of these are acceptable.
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4. Renfro Corporation started business in 1999 by issuing 200,000 shares of $20 par common stock for $36 each. In 2004, 20,000 of these shares were purchased for $52 per share by Renfro Corporation and held as treasury stock. On June 15, 2008, these 20,000 shares were
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This note was uploaded on 01/18/2011 for the course ACC 5110 taught by Professor Lee during the Winter '10 term at Wayne State University.

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Quiz_6_KEY _DAY - ACC 5110 Name: Part I. Choose the best...

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