Which statement is correct about the "single transaction method" for treasury shares?
A)This method has the same effect on contributed surplus to that of the two transaction method.
B)This method uses a separate "treasury shares" account upon re-purchase.
C)This method treats the reacquisition and subsequent sale separately for accounting.
D)This method decreases contributed surplus at the time of re-purchase.

Question

Quizplus · Accepted Answer

The single transaction method for treasury shares involves using a separate "treasury shares" account upon re-purchase, distinguishing it from other methods that might treat transactions differently or affect contributed surplus in various ways.

Which Statement Is Correct About the "Single Transaction Method" for Treasury