CFAstudier
New member
- Nov 30, 2015
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Hello all,
If a company buys back shares, internally financed using its own cash, I understand that assets (cash) would go down… and what would balance that in the accounting equation below? Owner’s draws?
Assets = Liabilities + Owner’s Capital + Revenues – Expenses – Owner’s Draws
Thanks!
If a company buys back shares, internally financed using its own cash, I understand that assets (cash) would go down… and what would balance that in the accounting equation below? Owner’s draws?
Assets = Liabilities + Owner’s Capital + Revenues – Expenses – Owner’s Draws
Thanks!