Which of the following may not affect retained earnings or earned capital? O Correction of prior period errors O Loss on reissuance of treasury shares O Profit or loss for the period Gain on reissuance of treasury shares

Which of the following may not affect retained earnings or earned capital? O Correction of prior period errors O Loss on reissuance of treasury shares O Profit or loss for the period Gain on reissuance of treasury shares

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 39MCQ: Which of the following are not part of common equity? a. preferred stock c. retained earnings b....

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Which of the following may not affect retained earnings or earned capital?
O Correction of prior period errors
O Loss on reissuance of treasury shares
O Profit or loss for the period
O Gain on reissuance of treasury shares

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