Treasury shares should be reported as a(n)

Name: Treasury shares should be reported as a(n)
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Treasury shares represent shares of a company's own stock that have been repurchased and are held by the company itself. As a result, they are not considered an asset or investment, but rather a reduction of shareholders' equity, as the repurchase of shares decreases the number of outstanding shares and therefore the ownership percentage of existing shareholders.

Treasury Shares Should Be Reported as A(n)