When a Company Issues Common Stock Greater Than Its Par

question 54

Multiple Choice

When a company issues common stock greater than its par value, the excess should be credited to:

• A) retained earnings.
• B) common stock.
• C) paid-in capital in excess of par.
• D) capital.

---

Definitions:

Mitochondrion

An organelle found in large numbers in most cells, involved in energy production.

Axons

Long nerve fibers that transmit signals from the body of a neuron to other cells.

Dendrites

The branched projections of a neuron that receive electrochemical signals from other neurons and conduct them toward the cell body.

Cell Wall

A rigid layer lying outside the plasma membrane of the cells of plants, fungi, and bacteria, providing structure and protection.