In the Rare Instance When a Par Value Stock Is

question 65

Multiple Choice

In the rare instance when a par value stock is issued at a cash price below par,the excess of the par value over the amount of cash received should be

• A)credited to a liability account.
• B)debited to the Retained Earnings account.
• C)debited to an account titled Discount on Capital Stock.
• D)credited to the Retained Earnings account.

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Definitions:

Memory

The faculty by which the mind stores and remembers information.

False Reporting

The act of providing incorrect or misleading information intentionally.

Pretend

To act as if something is true when it is not, often to entertain or practice.

Retrieving

The process of getting information out of memory storage and back into conscious awareness.