Which of the following statements is false regarding treasury shares? [A] purchasing treasury shares would decrease the total shareholders’ equity [B] the resulting gain in selling treasury shares is presented as share premium from treasury shares [C] treasury shares will not receive cash dividends [D] the retirement of treasury shares will decrease the total shareholders’ equity.

Which of the following statements is false regarding treasury shares? [A] purchasing treasury shares would decrease the total shareholders’ equity [B] the resulting gain in selling treasury shares is presented as share premium from treasury shares [C] treasury shares will not receive cash dividends [D] the retirement of treasury shares will decrease the total shareholders’ equity.

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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Please answer with reason why the option is correct and why the other options are not correct
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