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A firm repurchased some of its outstanding common stock in the current year. What impact does this transaction have on the financial statements? A. Cash

A firm repurchased some of its outstanding common stock in the current year. What impact does this transaction have on the financial statements?

A.

Cash increases and net income increases

B.

Cash increases and shareholders' equity increases

C.

Cash decreases and net income decreases

D.

Cash decreases and shareholders' equity decreases

E.

This transaction does not impact the financial statements

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