Asked by Hailey Cranor on Jun 07, 2024
Verified
For accounting purposes, stated value is treated the same way as par value.
Stated Value
A value that is assigned to a share of stock by the issuing company, which may bear no relation to its market value.
Par Value
Par value is the nominal or face value of a bond, share of stock, or coupon as stated by the issuer.
- Comprehend the accounting treatment of par and no-par value stocks, including stated value.
Verified Answer
GA
Gabbi AguayoJun 08, 2024
Final Answer :
True
Explanation :
Stated value and par value are both nominal values assigned to a share of stock, and are typically used for legal and accounting purposes. While they may have some differences in the way they are calculated or assigned, they are generally treated the same way in terms of accounting treatment.
Learning Objectives
- Comprehend the accounting treatment of par and no-par value stocks, including stated value.