The total amount of cash and other assets received by a corporation from its shareholders in exchange for common shares is included in
A)Organization costs
B)Private held shares
C)Contributed capital
D)Retained earnings
E)Equity

Question

Quizplus · Accepted Answer

The total amount of cash and other assets received by a corporation from its shareholders in exchange for common shares is accounted for as contributed capital on the balance sheet. Contributed capital represents the amount of equity invested by shareholders in a corporation. Choices A, B, D, and E are not accurate descriptions of the accounting treatment for the issuance of common shares.

The Total Amount of Cash and Other Assets Received by a Corporation