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:

Increases

The action or process of becoming larger in quantity, size, amount, or degree in a financial or numerical context.

Asset Account

An account that represents a resource owned or controlled by a business, expected to provide future economic benefits.

Debit

An entry recorded on the left side of an account in double-entry bookkeeping that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Liability Account

An accounting record of obligations or debts that a company owes to others, typically outside of the company.