1. A company’s own stock that it has issued and repurchased is called
a. outstanding stock.
b. dividend stock.
c. issued stock.
d. treasury stock.
2. Assume that a company paid $6 per share to purchase 1,100 of its $3 par common as treasury stock. The purchase of treasury stock
a. increased total equity by $3,300.
b. decreased total equity by $3,300.
c. decreased total equity by $6,600.
d. increased total equity by $6,600.
3. Assume that the bank requires ABC, Co., to maintain at least $125,000 in Retained earnings. The $125,000 would be shown as
a. a ratio of the $125,000 restriction divided by total Retained earnings.
b. a current liability.
c. a restriction to Retained earnings.
d. a long term liability.