Accounting reports the acquisition cost of treasury stock as a subtraction from total shareholders' equity. This accounting

Question:

Accounting reports the acquisition cost of treasury stock as a subtraction from total shareholders' equity. This accounting has the same effect on total shareholders' equity as retiring the stock with debits to common stock, additional paid-in capital, and retained earnings for the acquisition cost. Suggest reasons why firms typically do not account for treasury stock as retired stock.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: