How is treasury stock shown on the balance sheet?
A) as an asset
B) as a decrease in stockholders' equity
C) as an increase in stockholders' equity
D) treasury stock is not shown on the balance sheet

Question

Quizplus · Accepted Answer

Treasury stock is shown as a decrease in stockholders' equity on the balance sheet. This is because treasury stock represents shares of a company's own stock that have been repurchased and are therefore no longer outstanding. As a result, the company's total stockholders' equity decreases.

How Is Treasury Stock Shown on the Balance Sheet