If Stock Shares Are Sold at More Than Their Par

question 50

Multiple Choice

If stock shares are sold at more than their par value, the excess money is called:

• A) earnings.
• B) paid-in capital in excess of par value.
• C) gain on issue of stock.
• D) discount on issue of stock.

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Definitions:

Impedance

The total resistance to the flow of alternating current (AC) in a circuit, comprising both resistive and reactive components, measured in ohms.

Inductive Reactance

The opposition that an inductor presents to alternating current, due to the inductor's inductance, measured in ohms.

Power (P)

The rate at which electrical energy is transferred by an electric circuit, usually measured in watts (W).

Parallel Circuit

An electrical circuit in which components are connected across common points or junctions, allowing multiple paths for the current.