When Common Stock Is Issued by a Corporation for a Cash

question 82

Multiple Choice

When common stock is issued by a corporation for a cash price above par value,the excess of the cash proceeds over the par value should be reported in the financial statements as a component of

• A)retained earnings on the balance sheet.
• B)total liabilities on the balance sheet.
• C)operating income on the income statement.
• D)total contributed capital on the balance sheet.

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Definitions:

Performance Planning

The process of setting performance expectations and goals for teams or individuals to guide their work and evaluate their success.

Correcting

The act of identifying and rectifying errors or faults.

Organizational Citizenship

Behaviors by employees that are not part of their formal job requirements but help to enhance organizational functioning.

Cooperation

The act of working together towards a common goal, often involving the pooling of resources or effort.