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متابعة

Which one of the following statements regarding treasury stock is correct?

A. It is unretired but no longer outstanding, yet it has all the rights of outstanding shares.

B. It is an asset representing shares that can be sold in the future or otherwise issued in stock option plans or in effectuating business combinations.

C. It is unable to participate in the liquidation proceeds of the firm but able to participate in regular cash dividend distributions as well as stock dividends and stock splits.

D. It is reflected in shareholders’ equity as a contra account.

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تم إضافة السؤال من قبل مستخدم محذوف‎
تاريخ النشر: 2015/02/27
Said Shaban
من قبل Said Shaban , Accountant , Tri State Materials Testing

The Correct Answer: A - 

It is not retired but no longer outstanding

khaled komber
من قبل khaled komber , Finance Manager , Royal Abjer For Trading And Contracting

D. It is reflected in shareholders’ equity as a contra account.

Treasury stock recorded at cost is a reduction of total equity. Treasury stock recorded at par is a direct reduction of the pertinent contributed capital balance, e.g., common stock or preferred stock

Johannes Jacobus Van Der Merwe
من قبل Johannes Jacobus Van Der Merwe , Operational Complaince, Collection Manager , Ellerines Holdings Limited

B. It is an asset representing shares that can be sold in the future or otherwise issued in stock option plans or in effectuating business combinations.

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