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Which of the following is not true relating to treasury stock? a. A firm creates

ID: 461999 • Letter: W

Question

Which of the following is not true relating to treasury stock?

a.

A firm creates treasury stock when it repurchases its own stock and does not retire it.

b.

Treasury stock lowers the stock outstanding.

c.

Treasury stock may be recorded at the cost of the stock.

d.

Treasury stock may be recorded at par or stated value.

e.

Treasury stock is, in essence, an increase in paid-in capital.

a.

A firm creates treasury stock when it repurchases its own stock and does not retire it.

b.

Treasury stock lowers the stock outstanding.

c.

Treasury stock may be recorded at the cost of the stock.

d.

Treasury stock may be recorded at par or stated value.

e.

Treasury stock is, in essence, an increase in paid-in capital.

Explanation / Answer

Treasury stock is, in essence, an increase in paid-in capital.

Treasury stock is, in essence, an increase in paid-in capital.

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