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All of the following regarding accounting for Treasury Stock are true except: Multiple Choice Corporations do not record gains or losses on transactions involving their own stock. Treasury Stock receives cash dividends but not stock dividends. Purchasing Treasury Stock reduces the corporation’s assets and equity by equal amounts. Treasury Stock is presented on the balance sheet as a contra equity account. Treasury Stock does not have voting rights.

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Tundexi

Answer:

Treasury Stock receives cash dividends but not stock dividends.

Explanation:

Shares owned by the issuing company itself are considered as Treasury Stock. Prime reason company buys their own stock to reduce dividend expense and save cash. So, it does not make any sense to pay dividends to Treasury stock.

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