The purchase of treasury stock is recorded on the statement of financial position as a(n)

Option D: Decrease in Share holder equity as 

   Dr Shareholder Equity

   Cr Cash

Treasury Stock is reported as a reduction to the Share Holders Equity. When purchased in the GL below entry is passed:

Debit----Treasury Stock----xxxxx

Credit----Cash/Bank------       xxxxxx

Option D

Answer is

>> D)Decrease in Shareholder's equity,because treasury stock means buying back of shares from previous investors.

A and C both are possible if investment is above50% in other company.

Than S.F.P. items shall have to be increased in investor's accounts', according to his holding percentage.

A. Increase in assets of the companies.

answer D is the correct answer

The correct answer is A Increase in Assets

Increase in assets

correct answer

D. Decrease in shareholders’ equity.

Option A is the right answer.