How is the accounting for a purchase of a company’s own stock (treasury stock) different from the purchase of stock in another corporation?

Q: The corporation's own stock that has been issued and then bought back by the company is referred to…

A: Definition:   Definition:   Common stock: These are the ordinary shares that a corporation issues…

Q: A company plans to issue shares and wants to know the SEC's stance on the accounting treatment for…

A: Issuance of stock: It refers to the number of shares that are sold to the stockholders from number…

Q: Should a corporation issue common stock or preferred stock and why?

A: Few companies offer both preferred and common shares. Most companies, on the other hand, only issue…

Q: How does the purchase of treasury stock affect the purchaser’s assets and total equity?

A: Treasury stock: It can be defined as the stock that is repurchased or bought back by the issuing…

Q: When a company issues STOCK DIVIDENDS, what happens to the market value of its stock and what…

A: A company sometimes issue stock dividends in which instead of paying the shareholders cash dividends…

Q: own stock that they have previously issued?’

A: company wants to repurchase some of its own stock that they have previously issued because of…

Q: Define the term "treasury stock." What are the reasons for a company to purchase treasury stock?…

A: Here is the answer :

Q: What are some reasons corporations issue stock dividends?

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…

Q: Corporations with simple capital structures (only Common Stock issued) need not present Earnings per…

A: true  Corporations with simple capital structures (only Common Stock issued) need not present…

Q: What are the different sources of risk for an investor who holds a corporate bond, what are…

A: Both  bonds and common stocks are financial securities and hence the holders of these securities…

Q: Distinguish between oversubscription and undersubscription of shares issued by a company.

A: Issuance of stock:It refers to the number of shares that are sold to the stockholders from number…

Q: For accounting purposes, the method used to account for investments in common stock is determined…

A: If a firm invests in common stock (Equity) then, Required, For the purpose of its Accounting, the…

Q: From a corporation’s point of view, how does preferred stock differ from common stock?

A: Difference between Preferred and Common Stock from a corporation's point of view:   1. Preferred…

Q: The total amount of cash and other assets received by a corporation from its stockholders in…

A: Contributed capital is the part of stockholder equity that reports the amount received by the…

Q: How is treasury stock purchased? What ethical issues may arise from buying back company stock?

A: Treasury stock can be defined as the portion of equity which is not available for public to trade,…

Q: Explain how Stock Splits Effected in the Form of Stock Dividends.

A:

Q: Why do companies reacquire their own shares of stock?

A: Ans. For many reasons companies reacquire their own shares of stock. Some of them are discussed…

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split is an events that increase the outstanding shares and reduce the stated par value. For…

Q: How treasury shares are measured and accounted for in the books of corporation?

A: Treasury stock is that stock that is reacquired from the shareholders by the issuing company to…

Q: What is a stock dividend?  How does a common stock dividend distributed to common stockholders…

A: When dividend is issued to stockholders in form of stock instead of cash then it is called as Stock…

Q: Why the Nature of internal control over the payment of dividends as in the case of stock issuance is…

A: The Internal Control over Dividends', if we take case of 'Stock issuance', the internal control over…

Q: What factors go into valuing a company's stock

A: This question explains What factors go into valuing a company's stock:

Q: What benefits might a company gain from having its shares listed on a stock exchange? +resources

A: Companies raise equity financing by listing shares on stock exchange.

Q: When purchasing a company's stock, what would be your primary factors in valuing that stock?

A: Common stock: Common stock is the cash raised by the company by issuing common or ordinary shares to…

Q: When a company buys shares of its own stock to be held in treasury, it records a reduction in: B .…

A: When own stocks are bought and kept as a treasury, it is generally done to boost up the earnings of…

Q: What is Treasury share? What are the reasons that the corporation for reacquisition of shares?

A: Treasury shares are the shares that are brought back by the issuing entity from the open market from…

Q: What is the purpose of a stock dividend or stock split? How does a stock split impact a company's…

A: A stock dividend is a dividend payment that is made in shares to its shareholders instead of cash…

Q: What is the effect on the accounting equation when a stock dividend is declared? What is the effect…

A: Stock Dividends:  It refers to the payment of the dividend to its shareholders by the corporation in…

Q: What is treasury stock? Why would a company repurchase its own stock? How might they dispose of the…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: What is the accounting for treasury share transactions?    a. Treasury shares are accounted for as…

A: Answer) The correct answer in the given question is: (c) On re-issuance of treasury shares, a gain…

Q: What is (are) the test(s) REQUIRED by the NYSE so that companies are eligible to list their shares?…

A: There are various test required for companies to eligible to list their shares

Q: share capital, subscription of shares, and treasury shares

A: The company issue share capital to fulfil its capital requirement. When the public pays the…

Q: Define treasury stock. Why might a corporation acquire treasury stock? How is treasury stock shown…

A: Treasury stocks are the shares which are reacquired by the company that are already issued to the…

Q: What is a stock repurchase? Describe the procedures a company follows when it makes adistribution…

A: Stock repurchase means a company instead of giving cash as dividends to the shareholders buys their…

Q: Discuss the propriety of showing:(a) Treasury stock as an asset.(b) “Gain” or “loss” on sale of…

A: (a)

Q: e When does a company declare a cash dividend? d) Which characteristic of a corporation limits a…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: How does declaring a stock dividend affect the corporation’s assets, liabilities, and total equity?…

A: Stock dividends:   Stock dividends are dividends paid in the form of additional stock rather than in…

Q: When do dividends become legal debt of the company?

A: Once the dividend is declared by the company, it has to pay dividend in certain deadlines. It…

Q: Describe in general the various methods of accounting for an investment in equity shares of another…

A:

Q: Distinguish between accounting for retired shares and for treasury shares.

A: Retire stock: Buy back of shares from the shareholders by paying cash and obtaining the status of…