According to generally accepted accounting principles,treasury stock usually should be recorded at
A)original issue cost.
B)par or stated value.
C)cost.
D)net realizable value.

Question

Quizplus · Accepted Answer

Treasury stock is the company's own stock that has been repurchased and is therefore no longer outstanding. According to GAAP, it is usually recorded at its cost, which is the amount paid to repurchase the shares. Par or stated value is only relevant when the stock is issued, and net realizable value is more appropriate for inventory or accounts receivable, not for treasury stock. Original issue cost is also not applicable because treasury stock has already been issued and is being repurchased by the company.

According to Generally Accepted Accounting Principles,treasury Stock Usually Should Be