Asked by Morgan Young on Apr 28, 2024
Verified
Which of the following statements is false?
A) The common stock account has a credit balance.
B) The additional paid-in capital account has a credit balance.
C) Common stock may be issued for more than par value.
D) The par value of common stock represents the stock's market value.
Common Stock
Equity ownership in a corporation, with holders usually having voting rights and receiving dividends variable with the company’s profitability.
- Understand the handling of shareholders' equity through various transactions.
Verified Answer
SA
saeed aijazApr 29, 2024
Final Answer :
D
Explanation :
The par value of common stock does not necessarily represent the stock's market value. The par value is typically a nominal amount set by the company for legal purposes and has no direct correlation to the stock's market value.
Learning Objectives
- Understand the handling of shareholders' equity through various transactions.
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