The Par Value of Shares Issued Is Normally Recorded in The

question 63

Multiple Choice

The par value of shares issued is normally recorded in the:

• A)Additional Paid-in Capital account.
• B)Common Stock account.
• C)Retained Earnings account.
• D)Treasury Stock account.

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Definitions:

Elasticity

Elasticity refers to the measure of how much the quantity demanded or supplied of a good changes in response to a change in price.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases.

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in consumer income, indicating whether a good is a luxury or a necessity.

Price Elasticity

The measure of responsiveness of the quantity demanded or supplied of a good to a change in its price.