Treasury stock is a contra-shareholders' equity account and it shows the totaldollar amount a company has paid to its stockholders to repurchase shares of itsstock.TrueFalse

Treasury stock denotes the shares the company keep on his own treasure after buy back or repurchase.…

Answered: Treasury stock is a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Do preferred stockholders receive the share of the company earnings before or after bond interest is paid?
The Declaration on a stock dividend changes to total amount stockholder’s equity of the firm. True or False
How to find the outstanding comon shares? This statement is correct. The per-share book value is calculated by dividing the company’s total common equity by the number of outstanding shares of common stock. The book value per share of Blue Hamster Manufacturing Inc.’s stock is the accounting value of assets that the company’s common shareholders would receive if the company was liquidated. It is listed as total common equity on the balance sheet (total assets minus total debt) and is calculated by dividing the value of total common equity by the outstanding shares. In this case, $32,813 million / 50 million shares = $656.26 per share.
A stock's par value refers to the: O A. Value assigned per share by the corporate charter. O B. Market value of the stock on the date of the financial statements. OC. Maximum selling price of the stock.O D. Issue price of the stock.
Describe the types of shares held by the company. What can you say about the history of company share issues, retained earnings and payment of dividends? Are they following any specific policies for these? (Please correct answer)
please step by step answer.
?With regard to stock dividend, which of the following is true .Reduces a corporation's assets and stockholders' equity A .Does not affect total equity, but transfer amounts between the components of equity.B „The decision to declare a stock dividend resides with the shareholders .C Transfers a portion of equity from retained earnings to a cash reserve account.D
If a company repurchases its own stock, the journal entry to record this transaction will cause 'Total Stockholders' Equity to increase on the Balance Sheet. True False
Treasury stock is: Canceled as soon as it is acquired. O A current asset. O Included in issued shares. Stock owned by the Treasurer of the company.
hich of the following is not true about the stockholders' equity section of a balance sheet? a. Stock characteristics are indicated. b. Preferred stock subscriptions receivable, common stock subscriptions receivable, and treasury stock are subtracted from the total of paid - in capital and retained earnings. c. Contra equity accounts are shown at the beginning of the stockholders' equity section of a balance sheet. d. Retained earnings is listed after all paid - in capital.
When a corporation has outstanding both common and preferred stock Select one: a. Earnings per share is computed without regard to the amount of dividends declared on common stock. b. Basic and diluted earnings per share are reported only if the preferred stock is cumulative c. Earnings per share is reported for each type of stock outstanding d. Earnings per share is computed without regard to the amount of the annual preferred dividends.
In calculating earnings per share, a company uses the treasury stock method when a. it recognizes the assumed impact of exercising outstanding warrants. b. it develops a methodology to handle the premium paid on exercised share options. c. it needs to value the cash received for a convertible bond. d. it needs to value treasury stock repurchased during the year.

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Treasury stock is a contra-shareholders' equity account and it shows the total dollar amount a company has paid to its stockholders to repurchase shares of it stock.