Question: During the audit of the financing activities and cycle of Newcombe Enterprises, Inc. one of the audit staff associates working on the audit has brought to attention a large debit entry in the client's stockholder's equity accounts. The same staff associate has also noted that around the same time as this journal entry was input into the system, there was a large cash disbursement. Which of the following scenarios is most likely to explain these occurrences? Group of answer choices The entries that the staff associate uncovered are likely to do with callable stock and bonds which the client had previously issued. These journal entries describe a scenario whereby the client has called some its stocks and/or bonds. This scenario is most likely to do with some of the client's stockholders possessing convertible stock. The entries are most likely to do with some of the stockholder's converting their stock to bonds. This scenario is most likely to do with the client repurchasing shares of its own outstanding stock. This would explain the entries and occurrences the audit staff associate noted. This scenario most likely involves a secondary offering of stock by the client. This would explain the journal entries and