is treasury stock included in assets
Exam note: CPA exams in the past have listed a firm's treasury stock in the investment section of the balance sheet in questions calling for the candidate to identify errors. This requires the candidate to recognize that treasury stock is not an asset of the firm. It is reported as a contra-owner's equity account. These questions are solved by reducing the investment account by the amount recorded as treasury stock, and reinstating the treasury stock account as a reduction from total OE.