Net income decreases when treasury stock is sold for an amount less than the original cost when the shares of stock were repurchased.

Name: Net income decreases when treasury stock is sold for an amount less than the original cost when the shares of stock were repurchased.
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Question

Quizplus · Accepted Answer

Net income is not affected by transactions involving treasury stock, including sales below the original repurchase cost, as these transactions are recorded directly in equity, not on the income statement.

Net Income Decreases When Treasury Stock Is Sold for an Amount