The sum of the par value amount and the additional paid-in capital amount is the total amount received from shareholders for the shares when the firm first issued them.This total amount is also called _____.
A)contributed capital
B)paid-in capital.
C)treasury stock
D)Both answer choices a and b are correct.
E)None of these answer choices is correct.

Question

Quizplus · Accepted Answer

Contributed capital and paid-in capital are two ways to refer to the total amount received from shareholders for the shares when a firm first issued them. Therefore, both answer choices A and B are correct. Choice E cannot be correct because A and B are both valid options.

The Sum of the Par Value Amount and the Additional