Which statement does not explain the "two transaction method" for treasury shares?
A)This method treats the reacquisition as the end of the initial share issuance transaction.
B)This method treats the subsequent sale as the start of another transaction.
C)This method treats the reacquisition and subsequent sale separately for accounting.
D)This method treats the reacquisition and subsequent sale as two parts of the same transaction.

Question

Quizplus · Accepted Answer

The statement that does not explain the "two transaction method" for treasury shares is option D. The two transaction method treats the reacquisition and subsequent sale as separate transactions, not two parts of the same transaction.

Which Statement Does Not Explain the "Two Transaction Method" for Treasury