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A. Increase in assets.
B. Decrease in liabilities.
C. Increase in shareholders’ equity.
D. Decrease in shareholders’ equity.
Option D: Decrease in Share holder equity as
Dr Shareholder Equity
Cr Cash
Treasury Stock is reported as a reduction to the Share Holders Equity. When purchased in the GL below entry is passed:
Debit----Treasury Stock----xxxxx
Credit----Cash/Bank------ xxxxxx
Option D
Answer is
>> D)Decrease in Shareholder's equity,because treasury stock means buying back of shares from previous investors.
A and C both are possible if investment is above50% in other company.
Than S.F.P. items shall have to be increased in investor's accounts', according to his holding percentage.
A. Increase in assets of the companies.
answer D is the correct answer
The correct answer is A Increase in Assets
Increase in assets
correct answer
D. Decrease in shareholders’ equity.
Option A is the right answer.
