When treasury stock is sold above or below cost—why isn't this reported on the income statement as a gain or loss?
What will be an ideal response?
Answer: While these may appear similar to gains or losses, they are actually capital transactions. Gains or losses arise from the use of assets/resources in operating and investing activities—and treasury stock is typically treated as a reduction in stockholders' equity, not an asset.
Business
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Franchisors generally receive revenues from franchisees from all of the following except _____
a. initial franchise fee b. quality control fee c. percent of gross sales royalty fee d. sale of goods and services to franchisee
Business
The Supreme Court ruling in the Boys Markets case was issued in 2002
Indicate whether the statement is true or false
Business