Which of the Following Statements Is True of Treasury Stock

question 21

Multiple Choice

Which of the following statements is true of treasury stock?

• A) It is classified as an asset on the balance sheet.
• B) It allows management to vote for members of the board of directors.
• C) It is considered outstanding stock.
• D) It usually has a debit balance.

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Definitions:

Accounts Payable

Accounts payable refers to the amounts owed by a company to its creditors for goods or services received that have not yet been paid for.

Nominal Accounts

Accounts that are closed at the end of each accounting period; includes revenue, expense, and withdrawal accounts.

Sales Journal

A specialized accounting journal used to record all sales transactions of a company on credit.

Accounts Receivable Subsidiary Ledger

A ledger detailing individually the amounts owed by each customer, supplementing the general ledger's summary account.