Which of the following occurs as the result of a retirement of common stock?

Question 12 options:

	The number of shares of common stock outstanding decreases.
	The balance in the common stock account increases.
	The number of shares of common stock issued decreases.
	Both A and C occur.

Which of the following is the numerator of the earnings per share formula?

Question 13 options:

	The numerator is the sum of net income and preferred dividends.
	The numerator is the average number of common shares outstanding for the year.
	The numerator is net income minus common dividends.
	The numerator is net income minus preferred dividends.

Which of the following statements concerning the statement of retained earnings is NOT correct?

Question 14 options:

	The statement of retained earnings reports how the company moved from its beginning balance to its ending balance during the period.
	The statement of retained earnings contains information concerning new shares of stock issued during the period.
	Net income is reported as an increase in retained earnings.
	Companies often report income and retained earnings on a single statement.