When accounting for treasury stock under the cost method, which of the following statements is inaccurate?
Treasury stock is a reduction in the stockholders’ equity section of the balance sheet.
A cost flow assumption is applied when a company has multiple purchases of treasury stock. Each at their respective purchase costs
When treasury stock is sold for more than its acquisition cost, the difference is credited to either Retained Earnings or Paid-in Capital —Treasury Stock.
When treasury stock is sold for less than its acquisition cost, the difference is debited to either Retained Earnings or Paid-in Capital —Treasury Stock.
