Where is treasury stock reported on a corporation's balance sheet?

Question

Quizplus · Accepted Answer

Treasury stock is reported as a deduction from total stockholders' equity, following Retained Earnings. This is because treasury stock represents shares that were once issued but have since been repurchased by the company, and therefore are not available for future distribution to shareholders. As a result, including treasury stock as a deduction from total stockholders' equity provides a more accurate representation of the company's actual net worth.

Where Is Treasury Stock Reported on a Corporation's Balance Sheet