Asked by Crystal Weaver on Apr 27, 2024
Verified
Additional paid-in capital is reported on the balance sheet as a component of shareholders' equity.
Additional Paid-in Capital
Additional paid-in capital is the amount of money shareholders have invested in the company above the par value of the shares, representing excess capital that is not classified as profit.
Shareholders' Equity
The residual interest in the assets of a corporation after deducting its liabilities.
Balance Sheet
A financial statement that shows a company’s assets, liabilities, and shareholders' equity at a specific point in time.
- Understanding the form and sections of the balance sheet, with emphasis on the equity of stockholders, assets, and liabilities.
- Knowledge of the role and treatment of various elements in financial statements, including current and non-current assets, liabilities, and stockholders’ equity components like common stock and additional paid-in capital.
Verified Answer
Apr 29, 2024
Learning Objectives
- Understanding the form and sections of the balance sheet, with emphasis on the equity of stockholders, assets, and liabilities.
- Knowledge of the role and treatment of various elements in financial statements, including current and non-current assets, liabilities, and stockholders’ equity components like common stock and additional paid-in capital.
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