If Common Stock Is Issued for an Amount Greater Than

question 70

Multiple Choice

If common stock is issued for an amount greater than par value the excess would increase

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

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Definitions:

Gratuitous Assignment

The transfer of rights or property from one party to another without any exchange of value or consideration.

Assignee's Assent

The agreement or acceptance by the assignee to accept the terms and conditions of an assignment.

Valid

Having legal force, binding, or enforceable; conforming to the law or to established legal forms and requirements.

Donee Beneficiaries

Individuals or entities intended by the parties in a contract to receive benefits from the agreement's performance without being directly involved in the contract.