A gain or loss from one of the following transactions should not be included in determining income: a. receipt of interest from bank deposits b. sale of treasury shares c. sale of plant and equipment d. sale of product

A gain or loss from one of the following transactions should not be included in determining income: a. receipt of interest from bank deposits b. sale of treasury shares c. sale of plant and equipment d. sale of product

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Question

A gain or loss from one of the following transactions should not be included in determining income:

a. receipt of interest from bank deposits
b. sale of treasury shares
c. sale of plant and equipment
d. sale of product

T Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be:

a. debited to APIC to the extent of the credit when the stock was issued
b. debited to retained earnings
c. credited to APIC from previous treasury stock transactions
d. credited to APIC relating to the same issue

Which of the following should be reported for capital stock?

a. the shares authorized
b. the shares issued
c. the shares outstanding
d. all of these

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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