Which of the following statements is true regarding a corporation's purchase of treasury stock?
A) The cost of treasury stock is a reduction in stockholders' equity.
B) Dividends must still be paid on treasury stock because it is still issued.
C) Treasury stock is reported as an asset because it is considered an investment in the corporation's own stock.
D) Treasury stock is no longer considered issued once it is back in the hands of the issuer.
Answer: A
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.