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Treasury stock should be shown on the balance sheet as a(n):
a. Reduction of the corporation's stockholders' equity
b. Current asset
c. Current liability
d. Investment asset
Solution
correct option is "A" -reduction of the corporation's stockholders equity .
Treasury stock is a stock repurchased by company so it is shown by way of reduction from
stockholder equity.

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Treasury stock should be shown on the balance sheet as a(n)a.   R.pdf

  • 1. Treasury stock should be shown on the balance sheet as a(n): a. Reduction of the corporation's stockholders' equity b. Current asset c. Current liability d. Investment asset Solution correct option is "A" -reduction of the corporation's stockholders equity . Treasury stock is a stock repurchased by company so it is shown by way of reduction from stockholder equity.