If Ordinary Shares Are Issued for an Amount Greater Than

question 273

Multiple Choice

If ordinary shares are issued for an amount greater than par value, the excess should be credited to

• A) Cash.
• B) Retained Earnings.
• C) Share Premium-Ordinary.
• D) Legal Capital.

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Definitions:

Supreme Law

The highest form of law in a legal system, to which all other laws must conform; in the United States, this refers to the U.S. Constitution.

Checks and Balances

A system in government designed to prevent any single branch from gaining too much power, allowing each branch to limit or check the powers of the others.

Legislative Branch

The part of the government responsible for creating laws, consisting of elected representatives in many countries.

Legislative

Pertaining to the branch of government responsible for making laws.