If Ordinary Shares Are Issued for an Amount Greater Than

question 273

Multiple Choice

If ordinary shares are issued for an amount greater than par value, the excess should be credited to

• A) Cash.
• B) Retained Earnings.
• C) Share Premium-Ordinary.
• D) Legal Capital.

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Definitions:

Factory Overhead

All indirect costs associated with the production of goods, such as utilities, rent, and maintenance of equipment, that are not directly tied to a specific product.

Finished Goods

Items that have finished the production process and are available for purchase.

Factory Overhead

All indirect costs involved in the production process, such as utilities and maintenance, not directly tied to production output.

Debit Balance

A financial condition where the total debits in an account exceed the total credits, often indicating amounts owed.