ow will retained earnings be affected by purchase of treasury shares and subsequent sale of treasury shares at more than acquisition cost? Acquisition of TS Sale of TS a. no effect increase b. Increase no effect c. no effect no effect d. Increase decrease

ow will retained earnings be affected by purchase of treasury shares and subsequent sale of treasury shares at more than acquisition cost? Acquisition of TS Sale of TS a. no effect increase b. Increase no effect c. no effect no effect d. Increase decrease

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

How will retained earnings be affected by purchase of treasury shares and subsequent sale of treasury shares at more than acquisition cost?

Acquisition of TS Sale of TS

a. no effect increase

b. Increase no effect

c. no effect no effect

d. Increase decrease

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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