Treasury Stock Has A

question 113

Multiple Choice

Treasury stock has a:

• A)debit balance,the opposite of other stockholders' equity accounts.
• B)credit balance,the same as other stockholders' equity accounts.
• C)credit balance,the opposite of other stockholders' equity accounts.
• D)debit balance,the same as other stockholders' equity accounts.

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Definitions:

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or to the order of a person.

Promissory Notes

A written agreement to pay a specified amount of money, either on demand or at a defined future date.

Banker's Acceptance

A short-term debt instrument issued by a company that is guaranteed by a commercial bank, used in international trade.

International

Relating to, involving, or encompassing several countries or spanning across national boundaries.