The Arbitrary Amount Assigned by a Company to a Share

question 134

Multiple Choice

The arbitrary amount assigned by a company to a share of its stock is the:

• A)par value.
• B)capital value.
• C)no-par value.
• D)total value.

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Definitions:

Bonds Payable

Long-term debt securities issued by a company, promising to pay a specified sum of money at a future date.

Straight Line Amortization

A method of gradually reducing the book value of an intangible asset over its useful life in equal installments.

Goodwill Impairment

The process of reducing the book value of goodwill on the balance sheet if the fair value of the entity is less than its carrying amount.

Intercompany Sales

Transactions involving the exchange of goods or services between subsidiaries of the same parent company.