The acquisition of treasury stock by a corporation increases total assets and total stockholders' equity.

Name: The acquisition of treasury stock by a corporation increases total assets and total stockholders' equity.
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Question

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The acquisition of treasury stock by a corporation decreases total stockholders' equity since the company is using its own funds to buy back its own stock. The total assets remain the same as the cash used to purchase the treasury stock is offset by the decrease in stockholders' equity.

The Acquisition of Treasury Stock by a Corporation Increases Total