Which one of the following statements is false?
A)When stock is issued, legal capital is usually the total amount received.
B)Par value has no direct relationship to market value.
C)The accounting for stated value, no-par stock parallels accounting for par-value stock.
D)Capital stockholders have limited liability.

Question

Quizplus · Accepted Answer

Legal capital is the minimum amount that must be paid in to a corporation by shareholders in exchange for stock. It is not necessarily the total amount received. The total amount received may exceed legal capital if the stock is issued at a premium or if there are additional paid-in capital accounts.

Which One of the Following Statements Is False