The Paid-In Capital in Excess of Par Value Is Increased

question 17

Multiple Choice

The Paid-in Capital in Excess of Par Value is increased in the accounting records when

• A)the number of shares issued exceeds par value.
• B)the stated value of capital stock is greater than the par value.
• C)the market value of the stock rises above par value.
• D)capital stock is issued at an amount greater than par value.

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Definitions:

Effective Annual Interest Rate

The real return on a savings account or any interest-bearing investment, taking into account the effect of compounding interest.

Interest Rate

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Short-term Investments

Assets intended to be converted into cash or sold within a year.

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.