Treasury shares should be reported as a(n)
A) current asset.
B) investment.
C) other asset.
D) reduction of equity.

Question

Quizplus · Accepted Answer

Treasury shares represent shares of the company's own stock that have been repurchased by the company and are held by the company. These shares are not considered an investment, a current asset or other asset. They are reported as a reduction of equity because they represent a reduction in the number of outstanding shares and therefore a reduction in the company's total equity.

Treasury Shares Should Be Reported as A(n)