Which statement below regarding a share repurchase is true? A) Repurchasing shares increases retained earnings. B) The company repurchasing shares is not entitled to vote. C) Repurchasing shares decreases assets and equity. D) A share repurchase grows a company's assets and equity.

Question

Quizplus · Accepted Answer

Repurchasing shares decreases both assets (cash is used to buy back the shares) and equity (reduces the number of outstanding shares, thus reducing shareholders' equity).

Which Statement Below Regarding a Share Repurchase Is true