When treasury stock is sold at an amount less than its cost, the sale is classified as:
A) A financing activity.
B) An operating activity.
C) A financing activity and an operating activity.
D) An investing activity.

Question

Quizplus · Accepted Answer

Treasury stock transactions are considered financing activities because they relate to the company's equity and how it finances its operations and growth, not its core operational activities or investments in long-term assets.

When Treasury Stock Is Sold at an Amount Less Than