When No-Par Stock Is Issued

question 40

Multiple Choice

When no-par stock is issued:

• A)The entire amount received is credited to the Additional Paid-in Capital account.
• B)The issue price is credited to the Capital Stock account.
• C)There is no legal capital created because there is no par or stated value.
• D)The transaction usually involves only an exchange for non-cash assets or services,since the stock has no value on the stock exchanges.

---

Definitions:

Recasting

A teaching technique where an incorrect statement is repeated in a corrected form to facilitate learning.

Linguistically Sophisticated

Refers to having advanced language skills, including a wide vocabulary, the ability to understand complex grammatical structures, and the ability to convey nuanced ideas effectively.

Expanding

Restating, in a linguistically sophisticated form, what a child has said.

Metaphor

An implied comparison between two unlike things.