Both the Par Value of the Stock and the Additional

question 105

Multiple Choice

Both the par value of the stock and the additional paid-in capital are part of:

• A)retained earnings.
• B)legal capital.
• C)paid-in capital.
• D)stated value.

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Definitions:

Liabilities

Financial obligations or debts that an entity is required to pay to another entity in the future.

Currency

The system of money in general use in a particular country or region, acting as a medium of exchange.

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified price on a future date.

Exchange Gain

The profit resulting from foreign exchange transactions and the fluctuation in exchange rates, realizing a higher value in the home currency.