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Treasury shares are accounted for using the Fair value method O Cost method a or b neither a nor b

Treasury shares are accounted for using the Fair value method O Cost method a or b neither a nor b

FINANCIAL ACCOUNTING
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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Treasury shares are accounted for using the Fair value method Cost method a or b neither a nor b Which of the following is true? * When treasury shares are reissued, the related unrestricted retained earnings are reverted back to the appropriated retained earnings. The maximum amount to be used in acquiring treasury shares is the balance of the unrestricted retained earnings. Treasury shares do not affect the total shareholder's equity. Shares can be considered as treasury shares regardless of whether they are retired or not.
Transcribed Image Text:Treasury shares are accounted for using the Fair value method Cost method a or b neither a nor b Which of the following is true? * When treasury shares are reissued, the related unrestricted retained earnings are reverted back to the appropriated retained earnings. The maximum amount to be used in acquiring treasury shares is the balance of the unrestricted retained earnings. Treasury shares do not affect the total shareholder's equity. Shares can be considered as treasury shares regardless of whether they are retired or not.
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