If a Corporation Has Issued Common Stock at Various Prices

question 17

Multiple Choice

If a corporation has issued common stock at various prices that exceed par value,legal capital will be made up of the

• A)par value of the shares issued.
• B)total stockholders' equity plus total liabilities.
• C)total amount of contributed capital.
• D)total amount of contributed capital plus retained earnings.

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Definitions:

Purchase Order

A commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Consumption Method

An accounting practice that records the cost of goods sold at the time they are consumed or sold, as opposed to when they are purchased.

Office Supplies

Items needed for the daily operations of a business, such as pens, paper, and staplers.

Government-Wide Financial Statements

Comprehensive financial reports that present the financial position and results of operations of all governmental activities and entities.