How is treasury stock shown on the balance sheet?
A) as an asset
B) as a decrease in stockholders' equity
C) as an increase in stockholders' equity
D) Treasury stock is not shown on the balance sheet.

Question

Quizplus · Accepted Answer

Treasury stock is shown on the balance sheet as a decrease in stockholders' equity. This is because treasury stock represents shares of a company's own stock that have been repurchased by the company and are no longer outstanding. As a result, they are subtracted from the total amount of stockholders' equity.

How Is Treasury Stock Shown on the Balance Sheet