A company that buys back its own stock at a price below its original issuance price is least likely to affect which of the following financial statements? a) Balance Sheet b) Income Statement c) Statement of Cash Flows d) Statement of Changes in Owners’ Equity
buys back stock – so treasury stock. is on balance sheet. so balance sheet is affected CFF is affected because there is a cash outflow to purchase back the stock. Statement of CHanges in Owner’s equity is affected. *bcos treasury stock is part of owner’s equity. Income statement is not.
That’s right… Income Statement