Multiple Choice Question 197
Restricting retained earnings for the cost of treasury stock purchased is a
legal restriction. stock restriction. voluntary restriction. contractual restriction. 11- Multiple Choice Question 115 A company would not acquire treasury stock in order to reissue shares to officers. as an asset investment. in order to increase trading of the company’ s stock.
to have additional shares available to use in acquisitions of other companies.
12- Multiple Choice Question 121
Brown Company has 1,000 shares of 6 %, $ 100 par cumulative preferred stock outstanding at December 31, 2013. No dividends have been paid on this stock for 2012 or 2013. Dividends in arrears at December 31, 2013 total
$ 0.