Which of the following items affects total shareholders' equity without being reported on the income statement?
A)purchase of treasury stock
B)extraordinary items
C)discontinued operations
D)repayment of long-term debt

Question

Quizplus · Accepted Answer

Purchase of treasury stock is a transaction that affects the number of outstanding shares of a company, which in turn affects the calculation of total shareholders' equity. However, it is not a transaction that is reported on the income statement. Extraordinary items, discontinued operations, and repayment of long-term debt are all reported on the income statement and directly affect net income or loss, which in turn affects shareholders' equity.

Which of the Following Items Affects Total Shareholders' Equity Without