Two Classifications Appearing in the Paid-In Capital Section of the Balance

question 71

Multiple Choice

Two classifications appearing in the paid-in capital section of the balance sheet are

• A) preferred stock and common stock.
• B) paid-in capital and retained earnings.
• C) capital stock and additional paid-in capital.
• D) capital stock and treasury stock.

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Definitions:

Puncture

A small hole made by a sharp object in a surface.

Inflate

To cause to increase in size, volume, or importance, sometimes referring specifically to the increase of prices or the expansion of economic bubbles.

Patch

A small piece of material used to mend or cover a hole or a weak spot.

Bulges

Protrusions or outward expansions in a surface or structure, often caused by pressure from within.