a. In what respect does treasury stock differ from unissued stock? b. How should treasury stock be
Question:
b. How should treasury stock be presented on the balance sheet?
Step by Step Answer:
a Unissued stock has never been issued ...View the full answer
Related Video
Treasury stock refers to shares of a company\'s own stock that the company has bought back from its shareholders and now holds as a form of asset on its balance sheet. When a company buys back its own stock, it reduces the number of outstanding shares in the market, which can potentially increase the value of the remaining shares. Treasury stock can be acquired through a variety of methods, such as open market purchases, negotiated transactions, or as a result of converting convertible securities. Companies may buy back their own shares for a number of reasons, including to return capital to shareholders, to signal confidence in the company\'s future, or to use the shares for employee stock option plans. While treasury stock does not pay dividends, it can be reissued by the company at a later time, which could dilute the value of the remaining shares. Companies are required to report their treasury stock holdings in their financial statements.
Students also viewed these Accounting questions
-
(a) In what respect does treasury stock differ from unissued stock? (b) How should treasury stock be presented on the balance sheet?
-
In what respect does business strategy resemble military strategy?
-
How are premiums and discounts presented on the balance sheet?
-
In Problems, use a calculator to give a decimal approximation of the numbers to three decimal places. e 4
-
What strategies are most likely to be useful for firms in "perfectly" competitive markets?
-
Rightsizing is not a ripple but a tidal wave. Elaborate.
-
Debate the following: All arguments for restricting trade boil down to special pleading for particular interest groups. Ultimately there will be a net social cost from any trade restrictions.
-
The following data were selected from the records of Sykes Company for the year ended December 31, 2014. Balances January 1, 2014 Accounts receivable (various customers) . $120,000 Allowance for...
-
What would you do if a vendor sends a response to your RFP but doesn't follow through on the bid once you've signed? Is an RFP response a valid contract? Why or why not?
-
A company has $600,000 in short-term borrowings and $800,000 in long-term borrowings. What is the total equity and liabilities when using a vertical analysis of the statement of financial position?...
-
A corporation issues $25,000,000 of 5% bonds to yield an effective interest rate of 7%. a. Was the amount of cash received from the sale of the bonds more or less than $25,000,000? b. Identify the...
-
I-Generation Co. sold 14,000 annual subscriptions of Climbers World for $60 during December 2010. These new subscribers will receive monthly issues, beginning in January 2011. In addition, the...
-
Cubitene is a diterpene present in the defense secretion of a species of African termite. What unusual feature characterizes the joining of isoprene units in cubitene?
-
Projects often have a strategic and innovative focus resulting in using current technology. Why?
-
Assume that Edison Group has invited you as an external consultant to analyse its portfolio of companies. You decide to use the BCG matrix as a tool for the analysis. In which category would you...
-
With respect to the following costs, first identify if the expenditure is a business or investment expenditure. Then, discuss whether each is an expense or capital expenditure. Taxpayer owns and...
-
Gleam Company has a line of successful dental products that are sold in retail outlets across the country. These products include toothpastes, flosses, and rinses. The financial managers of Gleam are...
-
George and Claire are married and have 4 children. If they elect gift splitting, what is the maximum amount of total gifts they can make to their children (without using a 529 plan) in 2023 and have...
-
A combustion efficiency test done on a boiler indicated that the stack temperature is 350C and the CO 2 content is 10 percent. a. Determine the excess combustion air and the boiler efficiency if the...
-
Identify the tax issues or problems suggested by the following situations. State each issue as a question. Jennifer did not file a tax return for 2007 because she honestly believed that no tax was...
-
In Problems 2936, use point-by-point plotting to sketch the graph of each function. f(x) = 8/x
-
In a decentralized company in which the divisions are organized as investment centers, how could a division be considered the least profitable even though it earned the largest amount of income from...
-
In a decentralized company in which the divisions are organized as investment centers, how could a division be considered the least profitable even though it earned the largest amount of income from...
-
In a decentralized company in which the divisions are organized as investment centers, how could a division be considered the least profitable even though it earned the largest amount of income from...
-
Not all companies have expertise in managing their own logistics system so they look for experts to manage logistics needs. We call these experts logistics service providers (LSP) or third-party...
-
In general, what data is important for Costco? What are some table level structured data that Costco likely collect and manage currently? Include at least 6-8 What are a few examples of unstructured...
-
Describe a time in your life when some exerted one of the seven types of power over you. In your write-up, state the exact type of power that was being used and define that type of power. Describe a...
Study smarter with the SolutionInn App