Asked by MaryJean Throm on Jun 11, 2024
Verified
Treasury stock is considered to be a deduction from shareholders' equity.
Treasury Stock
Stock that was issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.
Shareholders' Equity
The residual interest in the assets of a company after deducting all its liabilities, representing what the shareholders own outright.
- Comprehend the effects of transactions involving treasury stock on both earnings per share and equity of shareholders.
Verified Answer
GN
GLORIA NAA ODOFELEY TAWIAHJun 14, 2024
Final Answer :
True
Explanation :
Treasury stock represents shares of a company's stock that have been bought back by the company itself. Since the company no longer considers these shares to be outstanding, they are considered a deduction from shareholders' equity.
Learning Objectives
- Comprehend the effects of transactions involving treasury stock on both earnings per share and equity of shareholders.
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