Treasury stock should be reported in the financial statements of a corporation as a (n)
A) investment
B) liability
C) current asset
D) deduction from stockholders' equity

Question

Quizplus · Accepted Answer

Treasury stock represents the company's own shares that have been repurchased and are no longer outstanding, therefore they cannot be considered an investment or a liability. The cost of the treasury stock is deducted from the stockholders' equity section of the balance sheet as a reduction in the total equity of the company.

Treasury Stock Should Be Reported in the Financial Statements of a Corporation