Use the following information to answer questions 7 and & RST Company reacquired 3000 shares of its own stock for $10 per share. RST later resold 400 of those share for $12 per share A RST will debit the Common Stock account for $10,000 RST w credit the Treasury Stock Account for $10,000. 7. Which of the following is correct regarding the purchase of the C. The balance in Treasury Stock will increase stockholders' equity. D. None of the above & Which of the following is true when RST resells the treasury stock? A. RST will credit a gain account for $2000. & RST will credit a gain account for $800. C. RST will credit an additional paid-in capital account for $2000 RST wil credit an additional pad incapeal account for Sao Large stock dividends and stock splits are issued primanily to the trading price of the stock per share. B Increase the number of authorized shares C Increase legal capital D. Increase the number of outstanding shares 10. The Statement of Cash Flows A lists all cash flows over the life of a company B. breaks down all cash transactions into Investing and Financing cash flows shows that the change in total cash from the beginning of the year to the end of the year is equal to the net operating. investing, and financing cash flows D. has two methods for lnvesting Cash Flows -direct and indirect 11. Operating cash fows exclude: A. Dividends received. B. Interest paid C. Dividends paid. D. None of the above. 12. Which one of the following is correct about the statement of cash flows? A A company with a net loss will always have a cash outflow from operating activities B. Collecting interest earned from a note receivable creates a cash inflow from investing activities EPaying dividends to investors creates a cash outflow from financing activities. D. The repayment of long-term debt is a cash inflow from financing activities. More Remix