If Common Stock Is Issued for an Amount Greater Than

question 13

Multiple Choice

If common stock is issued for an amount greater than par value the excess should be credited to

• A) Cash.
• B) Retained Earnings.
• C) Paid-in Capital in Excess of Par.
• D) Legal Capital.

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Definitions:

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied, leading to market balance.

Brings Together

Describes the act of gathering or assembling people, items, or ideas in one location or conceptual framework.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell, holding other factors constant.

Demand

The desire for a particular good or service combined with the ability and willingness to pay for it.