Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 22 - No. 10)
What is the impact of a company purchasing its own stock (treasury stock)?
Increases assets and decreases liabilities.
Decreases assets and decreases equity.
Increases assets and increases equity.
Decreases assets and increases liabilities.
Explanation
Treasury stock decreases the company's assets (cash) and decreases equity.
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