Question

Treasury stock represents ______. (Check all that apply.) the amount paid for stock reacquired and currently held in treasury stock issued in exchange for treasury bills a contra-equity account the amount paid to acquire US treasury stock

Answer 1

the amount paid for stock reacquired and currently held in treasury

Step-by-step explanation:

Treasury stock is an equity account and it is equal to:

• total shares issued - total shares outstanding

Treasury stock increases when a corporation repurchases outstanding stock for the purpose of reselling them later or retiring them. This usually happens when the corporation has more cash than needed or the price of the stock is too low.