If Stock Is Issued for Less Than Par Value, the Account

question 192

Multiple Choice

If stock is issued for less than par value, the account

• A)Paid-In Capital in Excess of Par is credited.
• B)Paid-In Capital in Excess of Par is debited if a debit balance exists in the account.
• C)Paid-In Capital in Excess of Par is debited if a credit balance exists in the account.
• D)Retained Earnings is credited.

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Definitions:

Total Surplus

Total surplus is the sum of consumer surplus and producer surplus in a market, representing the total benefits to society, including both the gains from trade to buyers and sellers.

Gains from Trade

The benefits obtained by countries from engaging in international trade, often resulting from specializing in the production of goods for which they have a comparative advantage.

Equilibrium

The point at which the quantity of a good or service demanded equals the quantity supplied, determining the market price.

Total Surplus

In a market, the complete societal benefits are represented by the combined value of consumer and producer surplus.