CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Treasury stock is disclosed in the financial statements as a ______.
A. current asset
B. note
C. reduction in total stockholders' equity
Explanation: Treasury stock is a contra account for stockholders' equity. Corporate assets (cash) were expended when the treasury stock was purchased and stockholders' equity was decreased by a corresponding amount.

User Contributed Comments 2

User Comment
maria15 Is it because treasury stock is a repurchased stock?
sevywonder @maria15 I'm almost certain that's the case
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