1. Distributions as cash dividends reduce:

a. Treasury stock

b. retained earnings

c. net income

d. accounts receivable

2. The price of a stock prior to a repurchase is $50. If the number of outstanding shares prior to a repurchase is 100,000 shares, how many shares were repurchased using $200,000 Cash?

a. 2,000

b. 96,000

c. 4,000

d. 6,000

3. Which of the following is true regarding distributions as repurchases of stock:

a. Retained Earnings are reduced by the amount of repurchased amount

b. Stock price is reduced due to the stock repurchase

c. Stock prices does not change due to the stock repurchase

d. Net income is reduced by the repurchased amount