When New Shares Are Sold at a Price Greater Than

question 119

Multiple Choice

When new shares are sold at a price greater than par value, the excess over par is recorded as:

• A)Capital surplus
• B)Retained earnings
• C)Treasury stock
• D)Authorized capital

---

Definitions:

Financial Data

Quantitative information concerning the financial health, performance, and condition of a business or individual.

Indirect Expenses

Expenses that cannot be directly traced to a specific cost object, such as rent, utilities, and administrative salaries.

Direct Expenses

Costs that can be directly attributed to the production of specific goods or services.

Overhead

The ongoing administrative and operational costs not directly attributable to the production of goods or services, such as rent and utilities.