The purchase of treasury stock would be considered a financing activity.

Name: The purchase of treasury stock would be considered a financing activity.
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Question

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The purchase of treasury stock involves the use of company resources to buy back shares of its own stock, which results in a reduction of outstanding shares. As a result, it has an impact on the company's capital structure and stockholders' equity, making it a financing activity.

The Purchase of Treasury Stock Would Be Considered a Financing