Which of the following statements regarding treasury stock is true?
A)When a company reissues treasury stock for more than it originally paid for the stock,it does not report a gain.
B)When a company purchases treasury stock or pays a dividend,it increases total stockholders' equity.
C)Treasury stock is reported as an asset on the balance sheet.
D)Treasury stock is reported as issued and outstanding stock.

Question

Quizplus · Accepted Answer

When a company reissues treasury stock for more than it originally paid, it does not report a gain; instead, the excess is credited to additional paid-in capital. Treasury stock transactions do not affect net income.

Which of the Following Statements Regarding Treasury Stock Is True