When Common Stock with a Par Value Is Sold for a Price

question 159

True/False

When common stock with a par value is sold for a price that exceeds par value,the Common Stock account is credited for the cash proceeds received from the sale of the shares.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions (such as fear and pleasure), drives (such as those for food and sex), and the formation of memories.

Negative Emotions

Feelings that are generally considered unpleasant or undesirable, such as anger, sadness, fear, or jealousy.

Infection

The invasion and multiplication of microorganisms such as bacteria, viruses, and fungi that are not normally present within the body, often causing illness.

Coincidence

The occurrence of two or more events at the same time by chance, without any apparent causal connection.