When shares are purchased or redeemed and cancelled, guidelines have been established for the sequence of accounts to adjust when allocating the cost. Which of the following is the first account to be adjusted?
A) a Contributed Surplus account created from a previous reacquisition of the same class of shares
B) the Share Capital account
C) Retained Earnings
D) Accumulated Other Comprehensive Income

Question

Quizplus · Accepted Answer

According to the guidelines, the Share Capital account is the first account to be adjusted when allocating the cost of purchased or redeemed shares.

When Shares Are Purchased or Redeemed and Cancelled, Guidelines Have