New Corpissues 2,000 Shares of $10 Par Value Common Stock at at $16

question 21

Multiple Choice

New Corp.issues 2,000 shares of $10 par value common stock at $16 per share.When the transaction is recorded, credits are made to

• A)Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $12,000.
• B)Common Stock $32,000.
• C)Common Stock $20,000 and Paid-in Capital in Excess of Par $12,000.
• D)Common Stock $20,000 and Retained Earnings $12,000.

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Definitions:

Two-tailed Test

A statistical hypothesis test in which the area of rejection is on both sides of the sampling distribution, allowing for testing in both directions.

Z-statistic

A statistical measure that quantifies the distance (in standard deviation units) a data point is from the mean of a distribution.

Two-tailed Test

A statistical test that considers both directions of an effect, testing the possibility of relationships in both positive and negative directions.

Significant

Denoting a result in statistical analysis that is likely not due to chance, thereby indicating a meaningful difference or correlation.