A Firm That Issues "No-Par" Stock Will Not Have a Separate

question 35

True/False

A firm that issues "no-par" stock will not have a separate common stock and additional paid-in capital account on their balance sheet,it will be consolidated into a single account called common stock.

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Definitions:

Cash Dividend

A cash dividend is a payment made by a company out of its profits to shareholders, typically on a quarterly basis, in the form of cash.

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and costs have been subtracted, reflecting the financial performance over a specific period.

Dual Effects Concept

An accounting principle that recognizes each transaction as having at least two effects on the accounting equation.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period.