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:

Anxious

Feeling anxious, troubled, or apprehensive, often in anticipation of an upcoming event or due to the unpredictability of its result.

Depressed

A state of low mood and aversion to activity affecting one's thoughts, behavior, feelings, and sense of well-being.

Alcohol Abuse

A pattern of drinking that results in harm to one's health, interpersonal relationships, or ability to work, including situations of excessive consumption and dependency.

Attempt Suicide

The act of intentionally trying to end one's own life.