The purchase of treasury stock ________.
A)requires recognition on the income statement of any gain made on the purchase
B)requires recognition on the income statement of any loss incurred on the purchase
C)does not require recognition on the income statement of any gain made on the purchase
D)always decreases net income

Question

Quizplus · Accepted Answer

The purchase of treasury stock does not require recognition on the income statement of any gain made on the purchase. Instead, any gain or loss is recorded in a separate equity account on the balance sheet. Therefore, choices A, B, and D are incorrect.

The Purchase of Treasury Stock ________