The Par Value of Common Stock Must Always Be Equal

question 163

True/False

The par value of common stock must always be equal to its market value on the date the stock is issued.

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Definitions:

Depreciable Lives

The estimated period over which a fixed asset is considered to be useful and thus can be depreciated for accounting purposes.

Depreciation Expense

The allocation of the cost of a tangible fixed asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Income Statement

A financial statement that reports a company's earnings, expenses, and net income over a specific period.

Ending Inventory

Merchandise value ready to be sold at the close of an accounting cycle.