The Par Value Method of Reporting a Treasury Stock Transaction

question 51

Multiple Choice

The par value method of reporting a treasury stock transaction

• A) Will be reported in the balance sheet as a reduction of total stockholders' equity.
• B) Results in no change to total stockholders' equity.
• C) Results in a reduction in the number of shares that are available to be sold to prospective investors.
• D) Assumes constructive retirement of the treasury shares.

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Definitions:

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