Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

12. Stockholders' Equity

Treasury Stock

Financial Accounting

12. Stockholders' Equity

Treasury Stock

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Multiple Choice

Shares of stock that are repurchased by the issuing corporation are referred to as:

Authorized stock

Preferred stock

Outstanding stock

Treasury stock

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Verified step by step guidance

Understand the concept of Treasury Stock: Treasury stock refers to shares that were previously issued and sold to investors but have been repurchased by the issuing corporation. These shares are held by the company and are not considered outstanding shares for voting or dividend purposes.

Differentiate between the terms: Authorized stock refers to the maximum number of shares a corporation is legally allowed to issue, as specified in its charter. Preferred stock is a type of stock that typically has priority over common stock in dividend payments and liquidation. Outstanding stock refers to shares currently held by shareholders, excluding treasury stock.

Recognize the purpose of repurchasing shares: Companies may repurchase shares to reduce the number of outstanding shares, increase earnings per share, or use the shares for employee compensation plans.

Identify the correct term: Shares repurchased by the issuing corporation are classified as Treasury stock, as they are held by the company and not available for trading or voting.

Apply this knowledge to similar scenarios: When analyzing financial statements, look for treasury stock under the equity section, as it reduces total equity and is reported as a contra-equity account.