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It is called a stock repurchase and is posted to an account called Treasury Stock, a contra-account in the Equity section.
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∙ 16y ago
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Does the acquisition of treasury stock increase cash?
Treasury stock is stock that the issuing company buys back from the shareholders. Since the company is buying back its own shares, it decreases cash and stockholder equity, but increases a new balance called "Treasury Stock".
What is retained earnings a asset?
When a company purchases stocks, it is shown as an investment on the Asset side of the Balance Sheet. However, if a company buys back its own stock, it is shown in the Retained Earnings section of the Balance Sheet as Treasury Stock.
When an owner buys stock what is the journal entry?
debit own stock / treasury stockcredit cash / bank
What are two possible reasons for the increase in inventory?
Inventory increases when a company buys goods from another company or custumers return a good for a refund.
What is the distinction in mergers and acquistitions?
The distinction in mergers and acquisitions means that the two words have different meanings. A merger is when a company merges or becomes part of another company. An acquisition is when a company out right buys another company.
What does is say about a company that buys its own stock back?
Sales Returns
Does the acquisition of treasury stock increase cash?
Treasury stock is stock that the issuing company buys back from the shareholders. Since the company is buying back its own shares, it decreases cash and stockholder equity, but increases a new balance called "Treasury Stock".
Who is the person who buys stock in a company?
a Stock Broker
When a company buys or sells stock what is it called?
Brokerage house.
What is a stockholder?
It's an organization or person who owns or shares a stock in a company
When a company buys another company what is the stock worth?
The stock value will then be the combined value.
What type of account is treasury stock?
Treasury stock is a stockholders equity stock. Treasury stock is stock that a company buys back in order to reduce the amount of outstanding stock available on the market.
What is it called when a stockholder buys and sells stock?
Stock trading.
What happens to previously issued stock when one company buys another company?
The parent company owns all the stock of the subsidiary.
What does a person who buys a stock own?
They own a share of a company.
What does it tell you about the corporation after it buys back its stock?
i think it is oxygen
What is retained earnings a asset?
When a company purchases stocks, it is shown as an investment on the Asset side of the Balance Sheet. However, if a company buys back its own stock, it is shown in the Retained Earnings section of the Balance Sheet as Treasury Stock.
