Which of the Following Statements About Treasury Stock Transactions Is

question 114

Multiple Choice

Which of the following statements about treasury stock transactions is correct?

• A)The total number of shares issued increases when treasury stock is purchased.
• B)The total number of shares authorized changes when treasury stock is purchased.
• C)Gains and losses on treasury stock transactions are reported on the income statement.
• D)A stockholders' equity account is debited when treasury stock is purchaseD.Treasury stock is a contra-equity account with a debit balance.

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