Friday, March 1, 2019

At the date of the financial statements, common stock shares issued would exceed common stock shares outstanding as a result of the

At the date of the financial statements, common stock shares issued would exceed common stock shares outstanding as a result of the



a. declaration of a stock split.
b. declaration of a stock dividend.
c. purchase of treasury stock.
d. payment in full of subscribed stock.


Answer: purchase of treasury stock

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Assuming a current ratio of 1.2 and an acid-test ratio of 0.80, how will the purchase of inventory with cash affect each ratio?

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