When a Company Has Treasury Stock Certificates on Hand, a Year-End

question 31

Multiple Choice

When a company has treasury stock certificates on hand, a year-end count of the certificates by the auditor is:

• A)always required.
• B)not required if treasury stock is a deduction from stockholders' equity.
• C)required when the company classifies treasury stock with other assets.
• D)required when the company had treasury stock transactions during the year.

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Definitions:

Franchising

A method of expanding a business and distributing goods and services through a licensing relationship.

Franchisee

A franchisee is an individual or company that has been granted the right by a franchisor to carry out business under the franchisor's brand and operational system.