Answered: the effect of Treasury shares are…

the effect of Treasury shares are resold at more than cost on total equity is No Effect Can't be determined Decrease Increase

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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Question

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Quèstion 21
the effect of Treasury shares are resold at more than cost on total equity is
No Effect
Can't be determined
Decrease
Increase

Expert Solution

Step 1

The treasury shares are the shares that have been reacquired by the issuing firm from the shareholders. Buying of treasury stock reduces stockholders' equity.

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