When ORourke Corporation sells treasury stock for more than the original cost, A. stockholders equity increases. B. paid-in capital increases. C. retained earnings may increase. D. retained earnings may decrease.

A. stockholders equity increases.

B. paid-in capital increases.

C. retained earnings may increase.

D. retained earnings may decrease.

Question 2 of 20

5.0 Points

At the end of the accounting cycle, net income will be closed into

A. Treasury Stock.

B. Paid-In Capital.

C. Cash.

D. Retained Earnings.

Question 3 of 20

5.0 Points

When treasury stock is reissued for more than cost,

A. debit Cash and credit Treasury Stock and Paid-In Capital from Treasury Stock.

B. debit Cash and credit Common Stock and Paid-In Capital from Common Stock.

C. debit Cash and credit Treasury Stock.

D. debit Cash and credit Treasury Stock and Retained Earnings.

Question 4 of 20

5.0 Points

A distribution to stockholders in the form of cash is called a

A. stock dividend.

B. stock split.

C. stock conversion.

D. cash dividend.

Question 5 of 20

5.0 Points

The entry to record the declaration of a stock dividend would include

A. a credit to Retained Earnings.

B. a credit to Cash.

C. a credit to Common Stock.

D. None of the above

Treasury stock is

A. stock thats issued in a stock dividend.
B. stock that has been reacquired by the corporation.
C. previously issued stock that has been canceled.
D. unissued but authorized stock.