Question: Is treasury stock an asset? If not, why not?

Is treasury stock an asset? If not, why not?

Step by Step Solution

★★★★★

3.43 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Treasury stock is not an asset because in many ways it is not different fr... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

75-B-A-E (130).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

Treasury stock should be reported as a current asset only if it will be sold within the next year or the operating cycle, whichever is shorter. As a deduction from total stockholders equity on the...

Q:

Treasury stock occurs when shares of common stock are bought back by the issuing company. Purchasing back one's own common stock with cash reduces the amount of the stock on the open market available...

Q:

Treasury Stock Indicate whether the following transactions increase, decrease, or have no effect on (a) Total assets and on (b) Total stockholders equity. _____ Issue 1,000 shares of common stock at...

Q:

http://www.pklsoftware.com/Student_Manuals/W4Me2_Manuals/W4Me_II_Problem_16.PDF copy and paste this link which leads to more info 1. From the balances shown on the End-of-Period Trial Balance, what...

Q:

Early in 2014, Jones Industries was formed with authorization to issue 125,000 shares of $20 par value common stock and 15,000 shares of $100 par value cumulative preferred stock. During 2014, all...

Q:

Select all statements that are correct. When a company purchases treasury stock, the asset, Treasury Stock, is debited. A gain is recognized when treasury stock is purchase for less than its par...

Q:

1. Why are large corporations often described as publicly owned? 2. Distinguish between corporations and sole proprietorships in the terms of the following charactistics. a. Owners' liability for...

Q:

Does accounting for treasury stock resemble accounting for an asset? Is treasury stock an asset? If not, where is it properly shown on a balance sheet?

Q:

Does accounting for treasury stock resemble accounting for an asset? Is treasury stock an asset? If not, where is it properly shown on a balance sheet? lp85

Q:

Does accounting for treasury stock resemble accounting for an asset? Is treasury stock an asset? If not, where is it properly shown on a balance sheet?

Q:

Consider the mechanism shown in the diagram below. The lengths of the links are as follows: OA = 200 mm, OB = 75 mm, AD = 400 mm, DE = 200 mm. AOB = 120 ,The slender rods have a linear density of...

Q:

A sinusoidal electromagnetic wave is propagating in a vacuum in the + z-direction. If at a particular instant and at a certain point in space the electric field is in the +x-direction and bas...

Q:

1 0 ) If you know that a product you love is on sale right now, how will your current demand for the product be affected?a . it will stay the same. b . it will go up . c . it will go down.d . None of...

Q:

The transactions and adjustments related to the first month of operations of Zoe Amelia Corp. were as follows: a. Issued common stock to the initial stockholders in exchange for their cash...

Q:

Along a supply curve, if the price of oil falls, what will happen to the quantity of oil supplied? Why?

Q:

Paterson Company,* a U.S.-based company, manufactures and sells electronic components worldwide. Virtually all its manufacturing takes place in the United States. The company has marketing divisions...

Q:

In Figure 3-9, the current position of the supply curve is S1, and the price of a portable power bank is $3. If suppliers anticipate a higher price of portable power banks in the future, will the...

Q:

At January 30, 2010, total assets were $33,652 and total stockholders' equity was $5,641. a. Calculate Dell, Inc.'s, working capital, current ratio, and acid-test ratio at February 3, 2012, and...

Q:

Let X have the density f(x) = Cx for 0 x 1,f(x) = C(2 x)/2 for 1

Q:

On December 30, 20X5, the statements of financial position of the Perk Company and the Scent Company are as follows: For both companies, the fair values of their identifiable assets and liabilities...

Q:

Zoe Ltd. has the following SFP at December 31, 20X5: Zoe Ltd. Statement of Financial Position December 31, 20X5 On December 31, 20X5, Halifax Ltd. bought 70% of the outstanding shares of Zoe Ltd. and...

Q:

Calgary Ltd. acquired a subsidiary, Ottawa Ltd., on July 1, 20X5, by paying $ 200,000 for 70% of the outstanding shares. The fiscal year- end for both companies is December 31. The statements of...

Q:

Martin Development Co. is deciding whether to proceed with Project X. The cost would be $10 million in Year 0. There is a 50% chance that X would be hugely successful and would generate annual...

Q:

On January 1, 2020, a machine costing $210,000 with a four-year life and an estimated $18,000 salvage value is installed in Apple Company's factory to Required: Compute depreciation for each year and...

Q:

Matt is analyzing two mutually exclusive projects of similar size and has prepared the following data. Both projects have 5 year lives. Matt has been asked for his best recommendation given this...