All categories

1 year ago

When treasury stock is purchased for an amount greater than its par, what is the effect on total shareholders' equity?

Business

1 answer:

fomenos1 year ago

8 0

When treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.

Given that the treasury stock is purchased for an amount greater than its par.

We are required to find the effect of the purchase of treasury stock for an amount greater than its par on the total shareholders' equity.

Treasury stock is basically known as treasury shares or reacquired stock, and refers to previously outstanding stock that is bought back from stockholders by the issuing company. The result of issuing treasury stock is that the total number of outstanding shares on the open market decreases. Shares of a company are a part of total shareholders' equity and because shares are issued for security, it will decrease the total shareholders;equity.

Hence when treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.

Learn more about treasury stock at brainly.com/question/17439058

#SPJ4

You might be interested in

Momentous Occasions is a photography business that shoots videos at college parties. The freshman class pays $1,000 in advance

Viefleur [7K]

Answer:

a. Considering the $1,000 paid by the freshman class,

Revenue earned on April 2

Did the earnings occur on the same date the cash was received No

b. Considering the $4,100 paid by the sophomore class,

Revenue earned on April 2

Did the earnings occur on the same date the cash was received No

Explanation:

a. Considering the $1,000 paid by the freshman class, on what date was revenue earned? Did the earnings occur on the same date the cash was received?

Revenue According to IFRS 15 is earned when earnings occur on the same date the cash was received when Momentous Occasions (the entity) transferres goods or services to the customer ( freshman class)

Thus $1,000 paid by the freshman class on March 3 is a Deferred Revenue. Earnings did not occur on the same date the cash was received.

Revenue occured when Momentous Occasions (the entity) transferred goods or services to freashman class on April 2

b. Considering the $4,100 paid by the sophomore class, on what date was the revenue earned? Did the earnings occur on the same date cash received?

Revenue occured when Momentous Occasions (the entity) transferred goods or services to freashman class on April 2

The $4,100 paid by the sophomore class on February 28 is payment for services rendered by Momentous Occasions on party held on April 2.

Thus Earnings did not occur on the same date the cash was received.

5 0

3 years ago

Suppose the price of crude oil drops from 150$ a barrel to 120$a barrel. The quantity bought remains unchanged at 100 barrels. T

IrinaK [193]

Answer:

coefficient = 0

Explanation:

We have the formula to calculate the price elasticity of demand as following:

Elasticity coefficient = % Change in quantity/ % Change in price

As given:

+) The percentage change in price is: (120-150)/150= - 20%

+) The quantity bought remains unchanged - which means the percentage change in quantity demanded is 0%

=> Elasticity coefficient = % Change in quantity/ % Change in price

= 0/-20 = 0

So the coefficient of price elasticity of demand in this example would be 0

7 0

3 years ago

Taubestan produces nearly 97% of the quinoa consumed around the world, and most of it is sold to wealthy nations. Although there

kaheart [24]

Answer:

The correct answer is letter "A": absolute advantage.

Explanation:

Absolute Advantage is an individual company, or country's ability to produce a good or service at a lower cost than any competitor. An organization with an absolute advantage requires fewer inputs or more efficient processes that allows the firm to lower prices and earn higher profits compared to its rivals.

5 0

3 years ago

Type the correct answer in the box. Spell all words correctly

Otrada [13]

Answer:

Explanation:

Dyslexia is a common learning difficulty affecting both children and adults. While no two individuals struggle with the same symptoms, generally people with dyslexia must work harder than their others to develop literacy skills.

They usually need more time to read and write, and go through series of frustration navigating numbers.

Therefore it will be best for Nathanael to use diagrams in his adverts to convey the message the company is trying to get across, because Individuals with dyslexia have more of a visual mind.

Also using less words and highlighting keywords with bright colours will make it clearer.

6 0

3 years ago

How does a mayor-council system function?

ValentinkaMS [17]

Answer:

The mayor is basically the city's chief executive, Meanwhile the council is the city's primary legislative body if you will. These make up general characteristics of a strong mayor council of governments . Therefore the mayor could or may appoint and remove departmental heads. The mayor can also draft and propose a budget to the city council basically.

7 0

3 years ago