If Vickers Company Issues 4,000 Shares of $5 Par Value

question 70

Multiple Choice

If Vickers Company issues 4,000 shares of $5 par value common stock for $140,000,

• A) Common Stock will be credited for $140,000.
• B) Paid-In Capital in Excess of Par Value will be credited for $20,000.
• C) Paid-In Capital in Excess of Par Value will be credited for $120,000.
• D) Cash will be debited for $120,000.

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Definitions:

Conscious Awareness

The state of being fully alert and aware of one’s thoughts, feelings, and environment.

Information Processing

A cognitive approach that likens the mind to a computer, focusing on how information is encoded, stored, and retrieved.

Cerebral Hemisphere

One of the two halves of the brain (left or right) in vertebrates, responsible for control over the opposite side of the body and different functions such as language and logic (left hemisphere) or spatial and creative tasks (right hemisphere).

Plasticity

The brain's ability to change and adapt as a result of experience or injury.