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Grace Tseng
on Nov 15, 2024

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When O'Rourke Corporation sells treasury stock for more than the original cost:

A) stockholders' equity decreases.
B) paid-in capital increases.
C) retained earnings may increase.
D) retained earnings may decrease.

Paid-in Capital

Funds raised by a company through the issuance of shares to shareholders, representing the funding the company has received from equity rather than from ongoing operations.

Stockholders' Equity

The ownership interest of stockholders in a company, represented by the company's assets minus liabilities.

Treasury Stock

Refers to shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of stock on the open market.

  • Acknowledge the effect of treasury stock transactions on corporate financial statements.
  • Gain understanding of the concept of paid-in capital and the way it is influenced by assorted stock transactions.
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Rohit LoombaNov 18, 2024
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