Treasury stock should be reported as a(n)
A) current asset.
B) investment.
C) other asset.
D) reduction of stockholders' equity.

Question

Quizplus · Accepted Answer

Treasury stock is a reduction of stockholders' equity because it represents shares of the company's own stock that have been repurchased and are no longer outstanding. It is not treated as an asset or investment because it does not generate income or provide value to the company.

Treasury Stock Should Be Reported as A(n)