The Par Value of Shares Issued Is Normally Recorded in The

question 53

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.

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Definitions:

Retained Earnings

The portion of a company’s profits that is retained within the business rather than distributed to shareholders as dividends.

Revenue Accounts

Accounts that record the income a company earns from its normal business activities.

Expense Accounts

Accounts that track the costs of operating a business, such as rent, utilities, and salaries.

Identification Codes

Unique codes used to identify and track items or information in various systems.