Which one of the following phrases is least desirable when describing an amount received from a sale of stock in excess of the par value of the stock?
A)paid-in capital in excess of par value
B)capital surplus
C)premium on common stock
D)contributed capital in excess of par value

Question

Quizplus · Accepted Answer

"Capital surplus" is the least desirable term because it is less specific than the other options. It can refer to various types of equity beyond just the amount received in excess of the par value of stock, making it less precise for this context.

Which One of the Following Phrases Is Least Desirable When