A Capital Surplus Is Obtained When the Par Value of a Stock

question 13

True/False

A capital surplus is obtained when the par value of a stock is greater than the retained earnings.

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Definitions:

Endocrine Glands

Glands of the endocrine system that secrete hormones directly into the bloodstream to regulate body processes.

Hormones

Chemical messengers produced by the endocrine glands that regulate various bodily functions by acting on specific target organs.

Bloodstream

The flowing body fluid that circulates through the heart, arteries, capillaries, and veins, carrying nutrients and oxygen to and waste materials away from all body tissues.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, involved in various higher brain functions such as thought, perception, and memory.