Which Statement Does Not Explain the "Two Transaction Method" for Treasury

question 63

Multiple Choice

Which statement does not explain the "two transaction method" for treasury shares?

• A)This method treats the reacquisition as the end of the initial share issuance transaction.
• B)This method treats the subsequent sale as the start of another transaction.
• C)This method treats the reacquisition and subsequent sale separately for accounting.
• D)This method treats the reacquisition and subsequent sale as two parts of the same transaction.

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Definitions:

Cash Investment

Financial assets that are highly liquid and can be quickly converted into cash, or the act of placing money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

Owner Recorded

The registration of assets, liabilities, or transactions by the owner in the financial records of a business.

Cash Payments Journal

A specialized accounting journal used to record all cash outflows or payments made by a business.

General Journal

A bookkeeping ledger that records every financial transaction of a business in chronological order.