Which One of the Following Statements Is Not True

question 133

Multiple Choice

Which one of the following statements is not true?

• A) Treasury stock transactions do not result in gains or losses on the income statement.
• B) The treasury stock account is treated as a contra-shareholders' equity account
• C) The total amount of shareholders' equity is unaffected by the method used to account for treasury stock.
• D) Treasury stock transactions may result in an increase to retained earnings.

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