Treasury Stock Is Classified As

question 178

Multiple Choice

Treasury stock is classified as:

• A) A contra asset account.
• B) A liability account.
• C) An asset account.
• D) A revenue account.
• E) A contra equity account.

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Definitions:

Operating Assets

Assets that are used for the day-to-day operations of a business, including cash, inventory, and property, plant, and equipment.

Minimum Required Rate

The lowest acceptable rate of return on an investment demanded by an investor, considering risk factors.

Net Operating Income

The profit generated from a company's everyday operations, excluding income from investments and extraordinary items.

Operating Assets

Assets used by a business in its operational activities to generate revenue, excluding investment and non-operational assets.