Par Value Plus Paid-In-Capital in Excess of Par Value Paid

question 12

Multiple Choice

Par value plus paid-in-capital in excess of par value paid by the shareholders could be defined as ________.

• A)legal capital
• B)retained earnings
• C)treasury stock
• D)preferred stock

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Definitions:

Future Value

The value of an investment or cash flow at a specified future date based on a certain interest rate.

Constant Dollar

An accounting method that adjusts financial statements for inflation, thereby allowing comparison of buying power across different periods.

Inflation

The rate at which the general level of prices for goods and services is rising, subsequently eroding purchasing power.

Initial Withdrawal

The first amount of money taken out from an investment or retirement account.