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The purchase of treasury stock is recorded on the statement of financial position as a(n)

A. Increase in assets.

B. Decrease in liabilities.

C. Increase in shareholders’ equity.

D. Decrease in shareholders’ equity.

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Question ajoutée par Utilisateur supprimé
Date de publication: 2015/02/26
Utilisateur supprimé
par Utilisateur supprimé

Option D: Decrease in Share holder equity as 

   Dr Shareholder Equity

   Cr Cash

Usmans Shahid
par Usmans Shahid , Budget Control Team Lead , Telenor

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

mohammed ghazi
par mohammed ghazi , sales/driver , Al jazim Construction

decrease in shareholders equity

Utilisateur supprimé
par Utilisateur supprimé

Answer is

>> D)Decrease in Shareholder's equity,because treasury stock means buying back of shares from previous investors.

Khurram Shaukat Memon
par Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

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.

 

 

Muhammad Imran
par Muhammad Imran , Head of Accounts & Company Secretary , Fauji Infraavest Foods Limited

A. Increase in assets of the companies.

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

answer D is the correct answer

Praveen Kumar Singh
par Praveen Kumar Singh , Executive Director & CEO , Usha Siam Steel Industries PLC

The correct answer is A Increase in Assets

MAHER MOHAMMED ABDALBAGI  ABDULLAH
par MAHER MOHAMMED ABDALBAGI ABDULLAH , Chief Accountant , Musaed julydan aljohani

correct answer

D. Decrease in shareholders’ equity.

 

 

Mobeen Tahir
par Mobeen Tahir , Credit Officer , Tawuniya Insurance

Option A is the right answer.

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