Which statement about a "treasury shares" is correct?
A)No company is permitted to hold treasury shares.
B)Treasury shares have voting rights.
C)Treasury shares receive dividends.
D)There are two methods that can be used to account for treasury shares: the single-transaction method and the two-transaction method.

Question

Quizplus · Accepted Answer

Treasury shares refer to shares that were issued and subsequently reacquired by the issuing company. They do not have voting rights, do not receive dividends, and can be held by the company. The accounting for treasury shares can indeed be handled using either the single-transaction method or the two-transaction method, reflecting the purchase and reissuance of these shares.

Which Statement About a "Treasury Shares" Is Correct