Treasury shares are most often reported as:

-A reduction of total shareholders' equity

-A reduction of total paid-in capital

-A reduction of retained earnings

-An expense in the income statement

Question

Business

Katelyn Rivas

27 March, 20:10

Treasury shares are most often reported as:

-A reduction of total shareholders' equity

-A reduction of total paid-in capital

-A reduction of retained earnings

-An expense in the income statement

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Answers (1)

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Madalyn Wolf · Answer 1

A reduction of total shareholders' equity

Explanation:

Treasury shares / treasury stocks is reacquired stock or bought back by the issuing company; which then reduce the outstanding of common shares.

The repurchase brings the total shareholder's equity down to the amount paid for treasury shares.

Treasury shares are most often reported as:-A reduction of total shareholders' equity-A reduction of total paid-in capital-A reduction of retained earnings-An expense in the income statement

Treasury shares are most often reported as:

-A reduction of total shareholders' equity

-A reduction of total paid-in capital

-A reduction of retained earnings

-An expense in the income statement