The Entry to Sell 100 Shares of $1 Par Value

question 151

True/False

The entry to sell 100 shares of $1 par value common stock at $5 per share would include a credit to Paid-in Capital in Excess of Par-Common for $400.

---

Definitions:

Consumer Incomes

The total earnings received by consumers, including wages, salaries, benefits, and income from investments, influencing their purchasing power and consumption patterns.

Demand Shift

Occurs when a change in factors other than the price of the good itself leads to a change in consumer demand, causing the demand curve to move left or right.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to no shortage or surplus.

MR

Short for Marginal Revenue, it is the increase in revenue from selling one additional unit of a good or service.