Alma Corp Issues 1,000 Shares of $10 Par Value Common Stock

question 24

Multiple Choice

Alma Corp. issues 1,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to:

• A) Common Stock $16,000.
• B) Common Stock $10,000 and Paid-in Capital in Excess of Par Value $6,000.
• C) Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $6,000.
• D) Common Stock $10,000 and Retained Earnings $6,000.

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Definitions:

Productivity

The measurement of efficiency in which goods and services are produced, often assessed by the amount of output per unit of input.

Marginal Revenue Product Curve

A graphical representation showing how the addition of one more unit of a resource affects the total revenue.

Law of Diminishing Returns

An economic principle stating that if one factor of production is increased while others are held constant, the overall returns will eventually decrease after a certain point.

Resource Demand Curve

A graph that illustrates the quantity of a resource demanded at various price levels.