What Is the Significance of "Par Value" for Accounting Purposes

question 61

Multiple Choice

What is the significance of "par value" for accounting purposes?

• A)The par value determines the amount of contributed surplus.
• B)Par value has no economic significance for accounting purposes.
• C)Par values determines the amount of cash received from investors.
• D)Par value shares are not permitted under IFRS or ASPE.

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Definitions:

Situational Leadership Model

A leadership approach that proposes the effectiveness of leadership styles varies depending on the readiness and competence of followers.

Telling Style

A leadership approach characterized by explicitly instructing subordinates on what to do and how to do it without seeking their input.

Contingency Approaches

Management theories suggesting that the best way to deal with certain situations is dependent on the specific circumstances.

Leadership Style

Refers to the manner and approach of providing direction, implementing plans, and motivating people within an organization or team.