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Which Statement Best Describes the Accounting When a Company Cancels

Question 18

Multiple Choice

Which statement best describes the accounting when a company cancels its own shares at an amount higher than the average share value?


A) Contributed surplus and retained earnings will be credited.
B) Contributed surplus and retained earnings will be debited.
C) Contributed surplus will be credited,thereby increasing equity.
D) Contributed surplus will be debited,thereby decreasing equity.

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