Which of the following combinations appropriately reflects the type of accounts represented by the Treasury Stock account and Additional Paid-in Capital--Treasury Stock account? Treasury Stock Additional Paid-Capital - Treasury Stock

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Treasury Stock account is a contra stockholders' equity account as it represents the reduction in the company's stockholders' equity when it buys back its own stock. Additional Paid-in Capital--Treasury Stock account, on the other hand, reflects the additional amount received by the company above the par value of the treasury stock. This account is also a part of the stockholders' equity section but is a contra account to the Treasury Stock account, making it a contra stockholders' equity account. Therefore, the appropriate combination is A.

Which of the Following Combinations Appropriately Reflects the Type of Accounts