If 10,000 Shares with Par Value of $15/share Are Issued

question 70

Multiple Choice

If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "common shares" for financial statement purposes?

• A)$10,000
• B)$50,000
• C)$150,000
• D)$200,000

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Definitions:

Loanable Funds

The resources available for borrowing, determined by the market for loans where savers supply funds and borrowers demand them.

Interest Rate

The cost of borrowing money or the return for investing money, expressed as a percentage of the amount borrowed or invested.

Stock

A share in the ownership of a company, representing a claim on the company's assets and earnings.

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, which are obligated to pay back with interest.