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) additional paid-in capital on preferred 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. The other terms directly indicate that the capital is in excess of the par value, which is more precise and relevant in financial reporting and accounting contexts.

Which One of the Following Phrases Is Least Desirable When