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.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 14MC: Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a...
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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.
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