Treasury stock is stock that was previously issued and paid for by stockholders, but then repurchased by the issuing corporation. It is not donated by stockholders and can be either preferred or common stock. On the balance sheet, it is categorized as a reduction of stockholders' equity and is subtracted from the total amount of common and preferred stock.

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Treasury Stock Is

Question 79

Multiple Choice

Treasury stock is

A) stock previously paid for in full by a stockholder,then repurchased by the issuing corporation.
B) donated by stockholders.
C) always preferred stock.
D) categorized under Paid-in Capital on the balance sheet and added to preferred and common stock.

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