Which of the Following Actions Could Increase the Balance in the Paid-In

question 105

Multiple Choice

Which of the following actions could increase the balance in the Paid-In Capital in Excess of Par-Common account?

• A) cash dividend declared
• B) stock split
• C) 10% stock dividend declared
• D) purchase of treasury stock

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Definitions:

Efficiency

The extent to which resources are used optimally to achieve the desired outcomes with minimum waste.

Partial Equilibrium

An analysis focusing on the equilibrium in a single market without considering its effects on or from other markets.

Equilibrium Conditions

A state in a market where the quantity of a good supplied equals the quantity demanded, resulting in market stability and no pressure for price changes.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity that suppliers are willing to offer for sale over a given period.