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Which of the Following Statements About the Impact of Treasury

Question 74

Multiple Choice

Which of the following statements about the impact of treasury stock on the amounts reported on the balance sheet is correct?


A) The balance in the treasury stock account increases paid-in capital.
B) The balance in the treasury stock account reduces paid-in capital.
C) The balance in the treasury stock account reduces total stockholders' equity.
D) The balance in the treasury stock reduces retained earnings.

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