Treasury shares are most often reported as:
A) A reduction of total shareholders' equity.
B) A reduction of total paid-in capital.
C) A reduction of retained earnings.
D) An expense in the income statement.

Question

Quizplus · Accepted Answer

Treasury shares represent shares of a company's own stock that the company has repurchased from shareholders. As a result, treasury shares reduce the number of outstanding shares, but they do not change the total amount of shareholders' equity. Therefore, treasury shares are reported as a reduction of total shareholders' equity.

Treasury Shares Are Most Often Reported As