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fenix001 [56]
2 years ago
12

What effect will the sale of treasury stock have on stockholders' equity and earnings per share, respectively?

Business
1 answer:
scoray [572]2 years ago
4 0

Increase and decrease effect will the sale of treasury stock has on stockholders' equity and earnings per share, respectively.

Treasury stock is a contra fairness account recorded in the shareholders' equity section of the stability sheet. due to the fact treasury inventory represents the quantity of shares repurchased from the open market, it reduces shareholders' equity by using the quantity paid for the inventory.

Selling treasury inventory always affects in an growth in shareholders' equity. The preceding instance shows you what takes place while an organization sells treasury inventory at a top rate to price. The accounting is different if an organization sells treasury inventory at a discount to its fee.

The treasury stock approach states that the fundamental proportion depend used in calculating a agency's income in step with proportion (EPS) must be improved because of first-rate in-the-cash options and warrants, which entitle their holders to buy common stocks at an workout fee that's underneath the modern market price.

Learn more about treasury stock here: brainly.com/question/8054097

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Sondra thinks the new business contract she signed with her business partner is valid. Both parties are legally competent, the c
DanielleElmas [232]

Answer: Whether consent was voluntary

Explanation:

From the question, we are informed that Sondra thinks the new business contract she signed with her business partner is valid. We are further told that both parties are legally competent, the contract has a legal purpose, an offer was made and accepted, and a fee has been negotiated and documented.

The essential element of a valid contract has Sondra not yet considered is whether consent was voluntary. This is important as they je must not be forced to sign a contract.

7 0
3 years ago
One of the easiest methods of diversifying away firm-specific risks is to: Multiple Choice build a portfolio with 40 to 55 indiv
Ratling [72]

Answer:

Option D. purchase the shares of a Index fund.

Explanation:

The reason is that the index funds are itself a mutual fund investment and they follow preset rules which helps an ordinary investor to understand those rules easily. Furthermore, they are already a diversified investment, hence investing in the shares of mutual fund makes the investment risk diversified investment.

4 0
3 years ago
The economic indicator that reflects activity of u. s. entities without regard to where the activity takes place is?
USPshnik [31]

The economic indicator that reflects the activity of the U.S. entitled without regard to where the activity takes place is GNP.

Gross national product (GNP) is an estimate of the total cost of all the final products and services grown to become out in a given duration via the way of production owned by a country's citizens.

Indicators of financial pastime financial signs consist of measures of macroeconomic performance (gross domestic product [GDP], intake, funding, and international alternate) and stability (central authorities' budgets, expenses, the cash supply, and the balance of payments).

Gross Domestic Product is essential as it offers records about the scale of the economy and the way an economy is performing. The increased price of actual GDP is often used as an indicator of the overall health of the economic system. In wide terms, growth in real GDP is interpreted as a sign that the economy is doing properly.

Learn more about Gross Domestic Product here brainly.com/question/1383956

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4 0
1 year ago
A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, pe
marusya05 [52]

Answer:

A. the promotion mix

Explanation:

3 0
3 years ago
Teal Company sells televisions at an average price of $814 and also offers to each customer a separate 3-year warranty contract
ki77a [65]

Answer:

A.

Dr Cash 266,178

Cr Sales Revenue 243,741

Cr Unearned Warranty Revenue 22,437

b)Current Liabilities:Unearned Warranty Revenue 90,579

Long-term liabilities:Unearned Warranty Revenue 181,158

Explanation:

Teal Company

A.

Dr Cash (814*327) 266,178

Cr Sales Revenue 243,741

Cr Unearned Warranty Revenue (277*81) 22,437

b)Current Liabilities:Unearned Warranty Revenue 90,579

(327×277)

Long-term liabilities:Unearned Warranty Revenue 181,158

(90,579×2)

4 0
3 years ago
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