Which of the Following Actions Could Increase the Balance in the Paid-In

question 83

Multiple Choice

Which of the following actions could increase the balance in the Paid-in capital in excess of par account?

• A) Cash dividend
• B) Stock split
• C) Stock dividend
• D) Purchase of treasury stock

---

Definitions:

Equivalent Units

A concept used in cost accounting to denote the amount of finished goods units that could have been produced given the total amount of direct materials, labor, and overhead costs incurred.

FIFO Method

An inventory valuation method that assumes the first items purchased are the first ones sold, standing for "first-in, first-out."

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of equivalent completed units for inventory valuation.

Forming Department

A specific department in manufacturing where raw materials begin their transformation into final products through various processes.