Which One of the Following Statements Is Not True

question 14

Multiple Choice

Which one of the following statements is not true?

• A) Treasury stock transactions do not result in gains or losses on the income statement.
• B) The treasury stock account is treated as a contro-stockholders' equity account
• C) The total amount of stockholders' equity is unaffected by the method used to account for treasury stock.
• D) Treasury stock transactions may result in an increase to retained earnings.

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Definitions:

Negotiate

The process of discussing something with one or more people in order to reach an agreement or settle differences.

Alternative Payees

Refers to the option within certain financial instruments or payment arrangements to designate a different recipient than the original one specified.

Endorsee

One who receives an endorsement.

Endorsement

is the act of endorsing, which can include a signature or instruction written on the back of a negotiable instrument, or a public expression of support.