When Common Stock Is Issued at an Amount Greater Than

question 107

Multiple Choice

When common stock is issued at an amount greater than par value, the difference between the par value and the proceeds from the sale is recorded by

• A)crediting the common stock account
• B)debiting an additional paid-in capital account
• C)crediting the retained earnings account
• D)crediting an additional paid-in capital account

---

Definitions:

Desired Benefits

The specific advantages or positive outcomes that consumers look for when purchasing a product or service.

Balanced Performance Scorecard

a strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Financial Perspective

An aspect of business strategy focused on financial metrics and outcomes as a measure of success, often used in the Balanced Scorecard framework.

Customer Perspective

The viewpoint or attitudes of customers towards a product, service, or brand.