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When treasury stock is accounted for at cost , the cost is reported on the balance sheet as a(n)?

1. asset2. reduction in retained earnings3. reduction of additional paid-in-capital4. Unallocated reduction in equity

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Question added by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline
Date Posted: 2014/04/03
Anayatullah Tahir
by Anayatullah Tahir , Finance Manager , Etqan Projects

Under the cost method, treasury stock is reported under quity section and is shown as a reduction from stockholder's equity.

From above choices no.4 is best close. "Unallocated reduction in equity"

Ahmed Gad
by Ahmed Gad , Accountant , management of armed force

unallocated reduction of total equity

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