An Additional Paid-In Capital Account Could Be Used with All

question 145

Multiple Choice

An Additional Paid-in Capital account could be used with all of the following transactions except:

• A)The issuance of par value stock at a price greater than the par value.
• B)The reissuance of treasury stock at a price less than the price paid when the stock was reacquired.
• C)The reissuance of treasury stock at a price greater than the price paid when the stock was reacquired.
• D)The issuance of no-par stock.

---

Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, affecting its liquidity.

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Discounted Cash Flow Analysis

A financial model used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.

Average Cost of Capital

A company's average cost of funds (both debt and equity), representing the return that investors expect for providing capital.