Which of the following statements isfalse?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.

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saeed aijaz · Accepted Answer

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.

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.

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Learning Objectives

Learning Objectives

Related questions

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.

Definitions

Learning Objectives

Learning Objectives

Related questions

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.