Which of the following is NOT a true statement? Treasury stock is:
A)Shares that have been issued but are no longer outstanding.
B)Shares that are included in earnings per share calculations.
C)Shares that cannot receive dividends nor vote.
D)Recorded in an equity account that has a debit balance.
E)Shares that are held by the issuing company but has not been retired.

Question

Quizplus · Accepted Answer

Treasury stock refers to shares that a company has issued and then reacquired. These shares are not considered when calculating earnings per share (EPS) because they are not outstanding shares. EPS calculations only include shares that are currently owned by external investors. Treasury stock does not have voting rights, does not receive dividends, and is recorded as a debit in the equity section of the balance sheet, which makes all other statements except B true.

Which of the Following Is NOT a True Statement? Treasury