Treasury Stock would be reported on the balance sheet as:

Question

Quizplus · Accepted Answer

Treasury stock is the company's own stock that has been repurchased and is no longer outstanding. It is reported as a reduction to stockholders' equity on the balance sheet, as it represents a decrease in the company's total ownership interest. Options A and B are not correct, as retained earnings and contributed capital represent different components of stockholders' equity. Option D is also not correct, as treasury stock is not considered a long-term investment.

Treasury Stock Would Be Reported on the Balance Sheet As