The Discount on Common Stock Account Reflects

question 32

Multiple Choice

The Discount on Common Stock account reflects:

• A)The difference between the par value of stock and its issue price when the issue price is below par value.
• B)One share's portion of the issued corporation's net assets recorded in its accounts.
• C)The difference between the par value of the stock and the amount contributed by stockholders when the amount contributed is more than par value.
• D)An amount of assets defined by state law that stockholders must invest and leave invested in a corporation.
• E)The amount a corporation must pay in addition to dividends in arrears if and when it exercises its right to retire a share of callable preferred stock.

---

Definitions:

Instinctive

Pertains to the inherent inclinations and responses that organisms are born with.

Instinctual Drive

An innate, biological motivator that drives behavior and responses to achieve specific needs.

Incentive

A motivational factor that prompts a person to act in a certain way or pursue a particular course of action.

Innate Goal

An inherent aim or objective that is hardwired into an organism, guiding its behaviors from birth.