When a Company Purchases Treasury Stock,which of the Following Statements

question 92

Multiple Choice

When a company purchases treasury stock,which of the following statements is true?

• A)Treasury stock is considered to be an asset because cash is paid for the stock.
• B)The cost of the treasury stock reduces stockholders' equity.
• C)Dividends continue to be paid on the treasury stock because it is still issued.
• D)Since treasury stock is held by the original issuer,it is no longer considered to be issued.

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