When a Company Issues Shares for More Than the Par

question 87

Multiple Choice

When a company issues shares for more than the par value, the excess is recorded as a:

• A)separate line item in statement of retained earnings.
• B)negative amount in accumulated other comprehensive income.
• C)gain on share issuance in the income statement.
• D)contributed surplus in the shareholders' equity section of the balance sheet.

---

Definitions:

Theocratic Law

A legal system in which laws are based on religious teachings and beliefs.

Procedural Law

The body of law that prescribes the process and methods for enforcing rights and duties and obtaining redress (as compared to substantive law, which deals with the rights and duties themselves).

Criminal Law

Laws and punishments that regulate social conduct and provide personal, property, and human rights protections.

Rule of Law Index

An indicator measuring how the rule of law is experienced and perceived in different countries around the world.