When Common Stock Is Issued,the Amount Recorded in Additional Paid-In

question 9

Multiple Choice

When common stock is issued,the amount recorded in Additional paid-in capital is ________.

• A)the cash received minus the amount recorded in the Common stock account
• B)the cash received plus the amount received in excess of par
• C)the par value plus the market price of the stock
• D)nothing; Additional paid-in capital is not affected by issuing common stock

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Definitions:

Judicial Review

The process by which courts examine the actions of the three branches of government to ensure they comply with the Constitution.

Constitutional

Relating to an established system of fundamental principles according to which a state or other organization is governed.

Legislative

Pertaining to the process of making or enacting laws.

Branches Of Government

Refers to the division of government responsibilities into distinct sectors to prevent any one group from gaining too much power, typically including the executive, legislative, and judicial branches.