When a Corporation Issues Capital Stock at a Price Higher

question 107

Multiple Choice

When a corporation issues capital stock at a price higher than the par value:

• A)The amount received over par value increases retained earnings.
• B)The entire issue price is credited to the Capital Stock account.
• C)The amount received in excess of par value constitutes profit to the issuing corporation.
• D)The amount received in excess of par value becomes part of paid-in capital.

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Definitions:

Creative Potential

The capacity or ability to generate innovative ideas and solutions.

Internal Customers

Individuals or departments within an organization that receive services or products from other parts of the company as part of the internal process.

Deming's Path

outlines a quality management philosophy focused on continuous improvement, customer focus, and the use of statistical methods for process control.

Total Quality Management

A management approach focused on continuous improvement across all functions of an organization to enhance quality and customer satisfaction.