When a company reissues treasury stock, it creates a cash inflow from an investing activity because treasury stock is an investment asset on the balance sheet.

Question

Quizplus · Accepted Answer

When a company reissues treasury stock, it does not create a cash inflow from an investing activity because treasury stock is not an investment asset on the balance sheet. Instead, it creates a cash inflow from a financing activity.

When a Company Reissues Treasury Stock, It Creates a Cash