Question

_______Treasury Stock is reported on the balance sheet

a. as an addition to Common Stock
b. as an addition to Paid in Capital in Excess of Par
c. as a deduction from Stockholders’ Equity
d. as an addition to Stockholders’ Equity

Answer 1

c. as a deduction from Stockholders’ Equity

Step-by-step explanation:

The treatment of the treasury stock in the balance sheet is that it is deducted from the stockholder equity as it shows the buy back position of the common stock

The other things i.e retained earnings, additional paid in capital is to be added as it increased the balance of the stockholder equity

Therefore in the given case, the option C is correct