Which One of the Following Statements Is Not True

Multiple Choice

Which one of the following statements is not true?

A) Treasury stock transactions do not result in gains or losses on the income statement.
B) Retained earnings may be restricted regarding dividends when treasury stock is held.
C) The total amount of stockholders' equity is unaffected by the method used to account for treasury stock.
D) Treasury stock transactions may result in an increase to retained earnings.