Which Statement Below Regarding Treasury Stock Is True

question 16

Multiple Choice

Which statement below regarding treasury stock is true?

• A)Issuing treasury stock decreases assets and equity.
• B)Issuing treasury stock increases assets and decreases equity.
• C)Treasury stock transactions have no effect on assets and equity.
• D)Purchasing treasury stock decreases assets and equity.

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Definitions:

Business Communication Efforts

The attempts by a business to share information, expectations, and objectives with its stakeholders.

Written Medium

A form of communication that involves the expression of thoughts, ideas, or information through the written word.

Digital Channel

A means of communication or distribution of information through digital platforms, such as social media, email, or websites.

Media Richness

The theory that describes the potential information-carrying capacity of a communication medium, including its ability to handle multiple cues simultaneously, facilitate rapid feedback, and establish a personal focus.