Par Value

question 159

Multiple Choice

Par value

• A) is the monetary value assigned per share in the corporate charter
• B) represents what a share of stock is worth
• C) represents the original selling price for a share of stock
• D) is established for a share of stock after it is issued

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Definitions:

Cash Dividends

Dividends paid in the form of cash to a company's shareholders from its current or accumulated earnings.

Additional Paid-In Capital

The amount of money that shareholders have paid in excess of the par value of the shares, representing a source of non-debt based capital for the company.

Goodwill

A non-physical asset created when acquiring a business at a cost higher than the fair value of its identifiable net assets.

Equity Method

An accounting technique used by companies to assess earnings generated by their investments in other companies, incorporating these earnings as part of their income.