If Common Stock Is Issued for an Amount Greater Than

question 65

Multiple Choice

If common stock is issued for an amount greater than par value, the excess should be credited to

• A) Retained Earnings.
• B) Cash.
• C) Legal Capital.
• D) Paid-in Capital in Excess of Par Value.

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Definitions:

1/100

A numerical representation often used to denote one percent or a fraction of a whole.

Milli-

A prefix in the metric system denoting a factor of one thousandth (1/1000) of the unit it precedes.

Metric System

A system of measurements that uses the base function of 10.

Base Ten

A numeral system that is decimal and uses ten as its base for counting and calculations.