Treasury stock should be reported in the financial statements of a corporation as a(n)
A) investment.
B) liability.
C) deduction from total paid-in capital.
D) deduction from total paid-in capital and retained earnings.

Question

Quizplus · Accepted Answer

Treasury stock is the company's own stock that has been reacquired and is held by the company. It is deducted from both total paid-in capital and retained earnings in the financial statements to reflect the reduction in the company's equity. Therefore, the correct choice is D.

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