11) Team Shirts sold $4,000 worth of its own stock in the stock market. The transaction would _________ cash by $4,000 and _________ shareholders’ equity by $4,000.
A) increase; increase
B) decrease; decrease
C) increase; decrease
D) decrease, increase
12) Which of the following will cause total shareholders’ equity to decrease?
A) issuing common stock
B) selling treasury stock
C) repaying a bond’s principal
D) purchasing treasury stock
13) Treasury stock is a company’s own stock that the company has repurchased.
14) Treasury stock is a contra-asset account.
15) Treasury stock is a contra-equity account.
16) Gains from treasury stock transactions increase net income.
17) The purchase of treasury stock reduces a company’s assets and shareholders’ equity.
18) Treasury stock is shown as an increase in shareholders’ equity on the balance sheet.
19) Outstanding stock has been issued and is either in the hands of shareholders or held by a corporation as treasury stock.