Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 111

For the following questions, circle the best response.

Treasury stock involves shares that are

a. authorized but not yet issued.

b. authorized, issued, and outstanding.

c. issued and outstanding but not yet authorized.

d. not yet authorized.

e. authorized and issued but not currently outstanding.

Step 1 of 6

(a)

Treasury stock is a corporation’s own stock that has been repurchased by the corporation. It would have been authorized, issued, and then repurchased. Shares that are authorized but not yet issued are not treasury stock.