Which of the Following Statements Correctly Describes a Treasury Stock

question 94

Multiple Choice

Which of the following statements correctly describes a treasury stock transaction?

• A)A treasury stock purchase for less than the amount of the stock's original issue cost results in a decrease in total stockholders' equity.
• B)A treasury stock purchase for less than the amount of the stock's original issue cost results in an increase in total stockholders' equity.
• C)A treasury stock purchase for an amount equal to the amount of the stock's original issue cost results in no change to total stockholders' equity.
• D)A treasury stock purchase for more than the amount of the stock's original issue cost results in an increase in total stockholders' equity.