When a Company Sells Stock for More Than the Par

question 97

True/False

When a company sells stock for more than the par value, it will record a gain on sale for the amount in excess of par.

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Definitions:

Noncash Investing

Investment activities that do not involve the immediate outlay of cash, such as the exchange of one asset for another.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing shares, borrowing money, and repaying debt.

Statement Of Cash Flows

A financial report summarizing the total cash inflows and outflows experienced by a corporation.

Operating Activities

Business actions directly related to producing and delivering goods and services, which are reflected in the company's cash flow.