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 .