Par Value Is Equal To

question 88

Multiple Choice

Par value is equal to:

• A)market value of the stock.
• B)the amount stated in the charter or legal capital.
• C)retained earnings.
• D)the initial price at which the stock is sold.

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Definitions:

Allocation Sequence

The order or process by which costs or resources are distributed among various departments or projects.

Service Departments

Units within an organization that support other departments but do not directly contribute to the production of goods or delivery of primary services.

Reciprocal Method

A technique used in cost accounting to allocate service department costs to production departments by recognizing the interdependencies between service departments.

Direct Method

A means of allocating service department costs directly to production departments without apportioning them among service departments first.