Shares of stock that have been reacquired by the issuing company are called treasury stock and the treasury stock account is debited for the cost.

Name: Shares of stock that have been reacquired by the issuing company are called treasury stock and the treasury stock account is debited for the cost.
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Question

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When a company reacquires its own shares, those shares become treasury stock and the cost of the reacquisition is debited to the treasury stock account.

Shares of Stock That Have Been Reacquired by the Issuing