Treasury stock is an asset, or is it a liability? explain.

Q: Explain what is the risk component of financial assets.

A: Risk can be described as the likelihood of an unexpected or negative outcome. Any act or activity…

Q: What are some advantages and disadvantages of stockrepurchases?

A: Answer: Stock repurchases is nothing but the allocation of profits by a corporation to owners by…

Q: How Is Treasury Stock Recorded?

A: Treasury stock: Treasury stocks are the company's own stocks reacquired by the company which were…

Q: Should preferred stock be classified as equity or debt? Explain.

A: Preferred stock is equity. Like equity or common shares, the stocks constitute a possession interest…

Q: What is common stock refer to?

A: A common stock is a security that represents ownership of equity in a company. The term ordinary…

Q: Define the term Liabilities and Stockholders' Equity?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: State the assumption about the “boot” that is made in the treasury Stock Method

A: Treasury Stock method:  The treasury stock methodology is a method used by companies to compute the…

Q: In accounting for mutual ownerships, what is the treasury stock approach?

A:

Q: Explain Liabilities and Stockholders' Equity?

A: Liabilities: Liabilities are debts and obligations payable by the corporation. A liability is a…

Q: Why are holding gains and losses treated differently for trading securities and securities…

A:

Q: What are the basis of common stock valuation?

A: Common stock is defined as the security, which used to represent an ownership in the company. Common…

Q: Common stock is an example of ?

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

Q: Treasury stock is generally accounted for by the?

A: The question is based on the concept of cost accounting. Companies occasionally buy their own shares…

Q: What is the ‘intrinsic value’ of a stock and what does it tell us?

A: Intrinsic value refers to a company's, stock's, currency's, or product's expected or calculated…

Q: Explain the accounting for stock-appreciation rights plans.

A: Share Appreciation Rights (SARs): The awards which offer the employees the right to receive either…

Q: Where Is Stock Traded?

A: Stock trading: Stock trading is defined as the purchasing and selling of shares in a specific…

Q: What is Common stock?

A: Common stock : Common stock is a securities of company or shares of Company.  A shares are owned by…

Q: Money Market instruments are: A. Common stock B. Preferred stock C. Loan stock D. Debt obligation

A: Dear student, as per Bartleby answering guideline, we can answer only one question, if student post…

Q: Define the term Stock Appreciation Rights.

A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…

Q: Treasury stock is classified as: OA A contra equity account. O B. A contra asset account. OC An…

A: Treasury Stock:  It is a stock that gets later repurchased by the company in order to reissue again…

Q: What is the statement of stockholders’ equity, and whatinformation does it provide?

A: The statement of stockholders' equity is a financial record of data related to changes in share…

Q: Why Shares repurchased and not retired are referred to as treasury stock?

A: Treasury stock is also known as treasury shares or reacquired stock. It refers to that previous…

Q: What is a share of stock? What is a bond? Explain their differences andsimilarities.

A: The bonds and shares are issued in the capital market in order to fulfil the capital requirement of…

Q: What is the capital market? What are the primary securities traded in it?

A: A stock market is a financial place where multiple buyers and multiple sellers come together to…

Q: What kind of account is treasury stock and what does it mean?

A: Lets understand from the basics. Company issue shares to public for the obtaining capital from them.…

Q: What does it indicate when there are outstanding units of stock

A: Share of a Stock are outstanding implies that the specified number of share of the stock have been…

Q: Stock appreciation right would normally be settled through

A: Second option is wrong because stock appreciation right is not settled through issue of share…

Q: How will the balance in Treasury Stock be reported on the balance sheet?

A: Treasury stocks are those shares which are required by the firm. So It is a portion of previously…

Q: Define the term Common stock?

A: Every company has many types of financing for the business, while major financing will come through…

Q: Explain Stockholders’ Rights.

A: The rights are explained as,

Q: What is the difference between common stock and retained earnings?

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: What does mean "Marketable securities" in the current asset of a balance sheet?

A: Current Assets are those assets from which the organization can derive economic benefits within one…

Q: a) Should preference shares be disclosed as 'equity' or 'debt'? Response

A: Preference Shares are the sources of capital for a corporation which are paid fixed rate of…

Q: What is treasury stock? What type of account is Treasury Stock, and what is the account’s normal…

A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…

Q: How does authorized stock differ from outstanding stock?

A: Outstanding stock: The total number of shares that are authorized and issued by a public company,…

Q: Is treasury stock an asset? explain.

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: Is preferred stock more like bonds or common stock? Explain

A: Ownership of an organization can be broken down into small parts or units also known as Shares.…

Q: What is treasury stock?

A: Ownership of an organization can be broken down into small parts or units also known as Shares.…

Q: How do you calculate the common stock value on a balance sheet?

A: Common stock represents the amount contributed by the common stock holders or the contributors of…

Q: Negotiable instruments of ownership or debt such as stocks and bonds are examples of a.…

A: Security is any proving of proprietorship or obligation to which value has been designated and can…

Q: What are stock rights? How does the issuing companyaccount for them?

A: Stock refers to the securities of a company which are issued by the company to the investors. It is…

Q: What happens to the buyer's assets and equity when they buy treasury stock?

A: This question tells about The purchase of Treasury shares has an impact on the assets and equity of…

Q: What is an asset allocation in investing equity securities?

A: Asset allocation means the investment portfolio is splitted based on the asset categories like…

Q: Who actually owns stock, how is the price of common stock based and how is the price of bonds

A: When company issues the stock of company in the market they are bought by all interested…

Q: Under what circumstances do we use the equity method to account for an investment in stock?

A: The equity method seems to be an accounting methodology that a firm uses to recognize profits gained…