Which of the following statements regarding repurchased stock is true?
A)It is generally less costly for a company to give employees repurchased shares than to issue new shares.
B)When a company records a stock repurchase,it is tracking a stockholder's sale of stock to another investor.
C)Treasury stock is reported on the balance sheet as an asset.
D)Treasury stock is repurchased stock that has been authorized but is not issued.

Question

Quizplus · Accepted Answer

Repurchased shares can be given to employees as part of compensation plans without diluting existing shareholders' equity, making it less costly than issuing new shares.

Which of the Following Statements Regarding Repurchased Stock Is True