Common stock was sold in excess of par; the excess was credited to Sales.This error would cause:

Name: Common stock was sold in excess of par; the excess was credited to Sales.This error would cause:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Selling common stock in excess of par generates additional capital and does not impact revenue. Crediting this excess to Sales would result in an overstatement of net income, as the excess capital is not revenue but rather equity. This does not affect the period's end assets.

Common Stock Was Sold in Excess of Par; the Excess