Which One of the Following Phrases Is Least Desirable When

question 64

Multiple Choice

Which one of the following phrases is least desirable when describing an amount received from a sale of stock in excess of the par value of the stock?

• A)paid-in capital in excess of par value
• B)capital surplus
• C)premium on common stock
• D)contributed capital in excess of par value

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Definitions:

CPA

Certified Public Accountant; a professional designation for accountants who have passed a licensing examination in accounting.

Obvious Error

A mistake made during a transaction or contractual agreement that is clear and undeniable to all parties involved.

Third Party Beneficiary

An individual or entity that is not a direct party to a contract but stands to benefit from its execution or enforcement.

Certification

The process of verifying the authenticity, quality, or qualifications of something or someone through a formal statement or document.