Which Statement About a "Treasury Shares" Is Correct

question 57

Multiple Choice

Which statement about a "treasury shares" is correct?

• A)The company does not pay dividends on these shares.
• B)These shares must be cancelled upon re-purchase.
• C)These shares are disclosed as issued and outstanding.
• D)These shares continue to have voting rights.

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Definitions:

Partial Equity Method

An accounting method used when an investing entity holds a significant but not controlling interest in another entity, recording the investment at cost and recognizing a proportionate share of the investee's earnings.

Consolidated Entity

A group of companies that includes a parent and its subsidiaries, for which financial performance is presented in a single set of financial statements.

Book Value

The net value of a company's assets as recorded on the balance sheet, excluding intangible assets like goodwill.

Fair Value

Fair Value is the estimated market value of an asset or liability, based on current prices in an open market, used for financial reporting.