Treasury stock is a contra equity account. true false
A contra equity account is a stockholders' equity account with a negative balance. This means that the account has a net debit balance. This account reduces the total amount of equity held by a business. Examples of contra equity accounts are: Treasury stock (reflects the amount paid by a b Treasury stock is a contra-stockholders' equity account. False. The excess of cost of treasury stock over proceeds is debited to Paid-in Capital from Treasury Stock to the extent that the account has a sufficient balance, and reduced Retained Earnings if the balance is insufficient